Skip to comments.Rogers Commodity ETNs Halt Issuing Of New Shares
Posted on 04/30/2009 8:59:26 PM PDT by george76
One of the most popular issuers of exchange-traded notes has stopped selling new shares after telling U.S. regulators it plans to restate earnings going back to 2006.
The Swedish Export Credit Corp., which goes by the acronym SEK and underwrites ETNs with more than $411.3 million in assets, suspended issuance of shares in seven of its products on Tuesday.
The firm's ETN lineup is dominated by its series that tracks different benchmarks designed by famed commodities manager Jim Rogers.
A note on the Web site that markets the ETNs under the Elements brand name on Wednesday said that the company expects the halting of new shares to be temporary.
Although ETNs (like exchange-traded funds) are issued in large blocks mainly through institutions, the move could impact individual investors. By stopping new issues from hitting the market, the ETNs effectively will trade like closed-end funds.
The impact to smaller investors is that without the ability to allow institutional investors to freely arbitrage shares, the ETNs could theoretically trade at substantial premiums to net asset values.
SEK notified the Securities and Exchange Commission that it had to adjust its accounting for the past three years. The company, which is run by the Swedish government, said that it needed to restate earnings "in order to correct certain technical errors in the marking to market of a small number of derivative positions, assets and liabilities required to be reported at fair value."
Credit Suisse pulled three of its four ETNs off the New York Stock Exchange, citing a lack of assets.
(Excerpt) Read more at finance.yahoo.com ...
SEK notified the Securities and Exchange Commission that it had to adjust its accounting for the past three years.
The company, which is run by the Swedish government...
I only care if this means Rogers is going to jail. I can’t stand the guy.
Sounds like Rogers needs to quit worrying about US Treasury Notes and clean up his stable of scat.