Bloomberg's Yiqin Shen joins Scarlet Fu and Eric Balchunas on "Bloomberg ETF IQ." Leveraged ETFs that offer the tantalizing prospect of doubling or tripling the daily returns of an individual stock are famously risky for investors who buy them. The result has been a quiet surge of activity in an exotic corner of the derivatives market, where investment banks, hedge funds and other institutional investors trade what are often known as “crash puts” and sometimes referred to as cliquets or stability notes. (Source: Bloomberg)
Stocks & Investing·Aug 3, 2026
Banks Offload Risk from Leveraged ETFs with ‘Crash Puts’
Bloomberg's Yiqin Shen joins Scarlet Fu and Eric Balchunas on "Bloomberg ETF IQ." Leveraged ETFs that offer the tantalizing prospect of doubling or tripling the daily returns of an individual stock are famously risky for investors who buy them. The result has been a quiet surge of activity in an exotic corner of the derivatives market, where investment banks, hedge funds and other institutional investors trade what are often known as “crash puts” and sometimes referred to as cliquets or stability notes. (Source: Bloomberg)
Bloomberg Markets1 min readPrimary source
The gist
1-point summary · 1 minBloomberg's Yiqin Shen joins Scarlet Fu and Eric Balchunas on "Bloomberg ETF IQ." Leveraged ETFs that offer the tantalizing prospect of doubling or tripling the daily returns of an individual stock are famously risky for investors who buy them. The result has been a quiet surge of activity in an exotic corner of the derivatives market, where investment banks, hedge funds and other institutional investors trade what are often known as “crash puts” and sometimes referred to as cliquets or stability notes. (Source: Bloomberg)
- Bloomberg's Yiqin Shen joins Scarlet Fu and Eric Balchunas on "Bloomberg ETF IQ." Leveraged ETFs that offer the tantalizing prospect of doubling or tripling the daily returns of an individual stock are famously risky for investors who buy them.
Integrity note · The source publication didn't make the full article available — Xela wrote this version from what could be gathered (headline, public summary, and signals). Facts and attributions are preserved; for the original piece in the publisher's own words, read it at Bloomberg Markets.
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