Chinese, Indian Currency ETNs Launch [View article]
If the ETNs are tied to currency futures and if interest rate parity holds, then you are effectively getting a psuedo interest rate return based on the local interest rates. A higher local interest rate than US rate would mean lower future prices for the foreign currency than spot, which makes up the differences in interest rates. Does anyone know the answer to this? These are non-floating currencies after all.
Chinese, Indian Currency ETNs Launch [View article]