This “Can’t Miss” Investment Promised a 25% Yield, Then Collapsed 98%
June 22, 2020 at 05:00 AM EDT
One of the worst disasters to befall investors in this crisis was something called the MORL dividend. MORL is—or rather was—the ticker for the ETRACS Monthly Pay 2XLeveraged ETN (MORL). What’s MORL? It’s a double-leveraged bank-issued note designed to track the MVIS Global Mortgage REITs Index, a market-cap-weighted global mortgage-REIT index. A mouthful, right? But the jargon and obscure nature of this investment didn’t stop a lot of people from buying in. The reason was simple: MORL yielded as much as 25% back in March. Think about that for a minute: a 25% dividend. Hold MORL for just four years and you’d get your entire investment back in cash payouts without selling a single share.… Read more
