XIV and SVXY: possible liquidation by issuer

Discussion in 'ETFs' started by m22au, Feb 5, 2018.

  1. m22au


    $VIX was up 115.60% to 37.32

    "This Is It": Traders Panic As XIV Disintegrates After The Close"

    which links to this article from July 2017
    "The "Wipeout Scenario": 250% Losses If VIX Spikes To 20"

    https://twitter dot com/search?f=tweets&vertical=default&q=%24xiv%20liquidation

    https://twitter dot com/firehorsecaper/status/960637606441734144
    "$XIV Apparent liquidation concerns. Prospectus states liquidation event if #VIV prints >100 1-day basis. $SVXY also with same AH action. "

    https://twitter dot com/polan13/status/960637123878506496
    I think we just saw liquidation events on multiple $VIX products. By liquidation event I think they might not exist tomorrow. If you want to learn more about this follow @jessefelder

    Last edited: Feb 5, 2018
    FSU and beerntrading like this.
  2. Judging by the number of VIX (XIV, SVXY...) threads on here today (6, I think this one is), I suspect there's a lot of ETers hurtin' this afternoon.
    FSU likes this.
  3. mt2rules


    People holding XIV, SVXY, or short UVXY through -10% Backwardation were out of there minds. You would have gotten blown out in both 2011 and 2008 doing that.
  4. VIX curve right after the close looked like the old curve charts from 08-09 (vixcentral.com). My TDA charts of some of the months, /VXM8 for example, basically look like someone was forced to buy in on the ask into the close, unpleasant!
    mt2rules likes this.
  5. Just looked at SVXY afterhours, in f'ing sane!
  6. kiev


    I still have svxy in hand, what should I do?
  7. Credit Suisse (xiv issuer) also down a lot in afterhours,,,don't want to sound batshit crazy but when's the last time someone said contagion?
    KevinD likes this.
  8. Everything has been insane today ATH--whole percentages below the day low in a lot of cases. Tomorrow it's gonna hit the fan.

    I used that word today in a chat with other traders. This one looks real.

    Your broker might moot that point and decide for you.
    KevinD likes this.
  9. S2007S


    Are xiv and svxy done???

  10. XIV can't go down too much further...there's a hard floor in its way.

    It does beg the question though. Who is left holding the bag if the short obligations actually do give the ETP a less than 0 value--for the fund itself?
    #10     Feb 5, 2018