In finance, the iPath refer to a family of

exchange-traded note An exchange-traded product (ETP) is a regularly priced security which trades during the day on a national stock exchange. ETPs may embed derivatives but it is not a requirement that they do so - and the investment memorandum (or offering documents ...

s (ETN) issued by

Barclays Barclays () is a British multinational universal bank, headquartered in London, England. Barclays operates as two divisions, Barclays UK and Barclays International, supported by a service company, Barclays Execution Services. Barclays traces ...

.''The ETF Handbook'' by David J. Abner 2010 page 38 iPath ETNs are senior, unsecured debt securities of Barclays Bank PLC, covering the following asset classes: Commodities, Equity smart beta, MLPs, Sustainable investing, and Volatility. The iPath combine the investment aspects of

bonds Bond or bonds may refer to: Common meanings * Bond (finance), a type of debt security * Bail bond, a commercial third-party guarantor of surety bonds in the United States * Chemical bond, the attraction of atoms, ions or molecules to form chemical ...

and exchange-traded funds (ETF). The first iPath securities were issued in 2006 and are registered under the

Securities Act of 1933 The Securities Act of 1933, also known as the 1933 Act, the Securities Act, the Truth in Securities Act, the Federal Securities Act, and the '33 Act, was enacted by the United States Congress on May 27, 1933, during the Great Depression and afte ...

, because they are issued by banks, not by investment companies.''The ETF Book'' by Richard A. Ferri, Don Phillips 2009 pp 52-53 The iPath trade close to their intra-day trading value and usually have a 30-year maturity. However, they may be redeemed (with a minimum of 50,0000 units) every Thursday- unlike the daily redemption feature of ETFs. They may also be traded on the

secondary market The secondary market, also called the aftermarket and follow on public offering, is the financial market in which previously issued financial instruments such as stock, bonds, options, and futures are bought and sold. The initial sale of the ...

. Although an iPath

security" \n\n\nsecurity.txt is a proposed standard for websites' security information that is meant to allow security researchers to easily report security vulnerabilities. The standard prescribes a text file called \"security.txt\" in the well known locat ...

may be linked to an underlying

market index Market is a term used to describe concepts such as: * Market (economics), system in which parties engage in transactions according to supply and demand *Market economy *Marketplace, a physical marketplace or public market Geography *Märket, an ...

its value may change even if there is little or no movement in the index, in the event that the

credit rating A credit rating is an evaluation of the credit risk of a prospective debtor (an individual, a business, company or a government), predicting their ability to pay back the debt, and an implicit forecast of the likelihood of the debtor defaultin ...

of the issuer changes, e.g. if the issuer receives a rating downgrade.

Sources

External links

iPath
Exchange-traded products {{finance-stub

See also

Sources

External links