'Haywire' ETN investment hits record in April
A worker passes a screen in Seoul displaying the crude oil price, April 20. Korea Times fileBy Lee Kyung-minThe monthly trading volume of leveraged crude oil exchange-traded notes (ETNs) skyrocketed 20-fold over the past four months, in what appears to be a market gone haywire driven by many investors seeking short-term, windfall gains following the steep oil price drop, data showed Sunday.The data from the Korea Exchange (KRX) showed the market daily trading volume averaged 412.3 billion won ($336 million) in April, more than 20 times the 20.7 billion won in December. The April figure is the highest since November 2014, when the market opened.The explosive demand in the derivative market was driven largely by ETNs tied to U.S. West Texas Intermediate (WTI), which reported a negative price for the first time, closing at minus $37.63 in New York, April 20 (local time), following sharp drops over the previous few months.Buyers of the notes, a type of unsecured debt security that tracks an underlying index of securities, are seeking gains from the difference in the crude price between t
