MORL: Double Yield And Double Annualized Volatility

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About: UBS ETRACS Monthly Pay 2x Leveraged Mortgage REIT ETN (MORL), Includes: MORT
by: Josh Ortner
This article is exclusive for subscribers.
Josh Ortner
Owner of Ortner Capital, pension fund manager, registered investment advisor
Summary

The ETRACS Monthly Pay 2x Leveraged Mortgage REIT ETN continues to draw investors attention with it's 18.6% dividend yield.

Before investing in MORL, investors need to understand the credit risks of this ETN and the leverage risks involved.

MORL has earned a CAGR of 13.39% while experiencing extreme volatility measured in standard deviation of over 26% annually.

After researching the UBS ETRACS Monthly Pay 2x Leveraged Mortgage REIT ETN (MORL) for a Seeking Alpha reader, I felt an urge to write about this product individually on all the hidden risks