The Best ETN (and therefore the most dangerous)

Take a look at the spread between LSC and DJP starting in late June 08.

Clearly this post is a little late to the party, but... WOW.

LSC is an ETN that replicates a technically traded long/short commodities index. It offers a compelling advantage over other commodities ETN's like DJP, and thus I will keep an eye on it. To track the underlying, Bloomberg SPTICTR:IND.

Sadly, it is less liquid than DJP, and contains credit risk via HSBC USA.

Clearly the credit risk is very real as HBC is barely a week from its lows.

A debt product whose underlying is a technically managed commodity index is awesome for many reasons, but until HBC can get its act together, I'm too chicken to jump into this pool.