Etracs Monthly Pay 2Xleverage (MORL)

[Dionne]

Dividend is good but what if your capital lose all its value? I've done some research and here's what I found (correct me if I'm wrong).

They issued for 10 000 000$ in 2012, at a value of 25$ each. They are 200 000 000$ bond expiring in 2042. Which would make them 500$ each in 2042. The problem is I think I saw somewhere that they can issue more if they wanted to. Would they increase the 2042 200m$? The dividend is also very unsure, it depends on the profit which I also don't completely understand. Please add whatever you find.

[mikembte2005]

Those are good questions. I do not understand how it all works myself but like the dividends that it pays.

[Dionne]

Hey guys, I'd need some help at this point. I know this is somewhat riskier than a lot of other investments, but if one would keep the investment until maturity (2042), is the big part of that risk UBS to go bankrupt? Can the dividends change dramatically? If interest rates spike, I understand the value of the bonds owned by MORL will decrease, which will decrease the value of MORL, but why would someone care if MORL is owned until maturity?

If it is owned for a long term, how can the dividend change over time? And the last question, since it has a maturity, it should also have a "par" price. Anyone knows that unit price for 2042?

[Dionne]

Hey guys, I'd need some help at this point. I know this is somewhat riskier than a lot of other investments, but if one would keep the investment until maturity (2042), is the big part of that risk UBS to go bankrupt? Can the dividends change dramatically? If interest rates spike, I understand the value of the bonds owned by MORL will decrease, which will decrease the value of MORL, but why would someone care if MORL is owned until maturity?

If it is owned for a long term, how can the dividend change over time? And the last question, since it has a maturity, it should also have a "par" price. Anyone knows that unit price for 2042?

[Dionne]

Hey guys, I'd need some help at this point. I know this is somewhat riskier than a lot of other investments, but if one would keep the investment until maturity (2042), is the big part of that risk UBS to go bankrupt? Can the dividends change dramatically? If interest rates spike, I understand the value of the bonds owned by MORL will decrease, which will decrease the value of MORL, but why would someone care if MORL is owned until maturity?

If it is owned for a long term, how can the dividend change over time? And the last question, since it has a maturity, it should also have a "par" price. Anyone knows that unit price for 2042?

[Dionne]

Hey guys, I'd need some help at this point. I know this is somewhat riskier than a lot of other investments, but if one would keep the investment until maturity (2042), is the big part of that risk UBS to go bankrupt? Can the dividends change dramatically? If interest rates spike, I understand the value of the bonds owned by MORL will decrease, which will decrease the value of MORL, but why would someone care if MORL is owned until maturity?

If it is owned for a long term, how can the dividend change over time? And the last question, since it has a maturity, it should also have a "par" price. Anyone knows that unit price for 2042?

[mikembte2005]

MORL is like a forever stock. Even the dividends are X 2. Great long term buy and hold here.

[mikembte2005]

Like the dividends on MORL. Great time to go in a this level.

[Timberliner]

Thanks. Yeah, there is a lot of long term opportunity with MBS, especially this because of the 2x leverage. GLTY

[Private Citizen]

Hey TL, I ended up investing in it gradually and so far since Nov to this month's div & equity, up $800+. Not bad at all!! There is a good read at Seeking Alpha and search symbol MORL, if this link don't work.

www.seekingalpha.com/symbol/morl

Peace

PC

[Timberliner]

This has a lot of potential, especially with the FED continuing its purchasing program.

[Private Citizen]

Only invested 1K so far, but at almost 25% dividend, so in 2 mos, made 80 in dividends and almost 200 or 20% on my stock equity as well. I will reservely test the waters again with another 1K investment. It may be a small investment, but just testing it's waters still. So far, so great!!