Petromatrix’s Olivier Jakob evaluates CFTC weekly trader data on a regular basis, and one thing he was quite looking forward to analysing was the liquidation of Deutsche Bank’s exchange-traded-note — the PowerShares DB Crude Oil Double Long (DXO). Analysts expected the liquidation would flood the curve with up to 11,750 futures contracts. Yet, as Jakob points out in a recent note, the latest data fails to account for any such liquidation at all…..

…..So in effect, if you thought you were buying oil as an inflation hedge with the DXO, you would be wrong. You were actually buying returns based on a 100 per cent guarantee by just one counterparty – Deutsche Bank. The fund – or trust – that issued the notes never owned any oil on your behalf.

For the full story click: HERE

 

GET A FREE TREND ANALYSIS  FOR ANY ETF HERE!

---

Related posts:

1. Deutsche Bank to Repurchase Three ELEMENTS Exchange Traded Notes (ETNs)
2. Deutsche Bank and Invesco PowerShares Launch ETNs Linked To Inflation or Deflation Expectations
3. Gold Investors: What The Heck Happened To Gold? (GLD, SGOL, IAU, UUP, FXE)

NYSE:DXO