BlackRock, Inc. (NYSE:BLK)’s Larry Fink issued a stern warning regarding leveraged ETFs yesterday, saying the investment vehicles have the potential to “blow up.” Fink asking to shift focus away from assets under management to individual products “BlackRock, Inc. (NYSE:BLK) would never do a leveraged ETF,” Fink was quoted as saying in a Bloomberg article, asking regulators to shift their focus from the assets under management to the danger and leverage within each product. Blackstone is currently under consideration as a potentially “systemically important financial institution” (SIFI), a designation that the firm wishes not to add. By focusing on product risk and…
Blackrock's Fink 'Blow Up' Warning In Derivatives
Mark Melin
Mark Melin is an alternative investment practitioner whose specialty is recognizing the impact of beta market environment on a technical trading strategy. A portfolio and industry consultant, wrote or edited three books including High Performance Managed Futures (Wiley 2010) and The Chicago Board of Trade’s Handbook of Futures and Options (McGraw-Hill 2008) and taught a course at Northwestern University's executive education program.