USOI Oil ETN Yields 21% Amid War Volatility But Faces Credit, Upside Risks

UBS ETRACS Crude Oil Covered Call ETN (USOI) continues to yield 21.08% annualized via covered calls on USO amid oil volatility from the Iran war and Strait of Hormuz blockade. Two articles today warn it's an unsecured ETN—not ETF—exposing holders to UBS credit risk after its Credit Suisse acquisition ballooned the balance sheet to $1.7 trillion; the strategy caps upside in rallies and yield may shrink as tensions ease. With NAV at $57.40, net assets $325.68 million, and maturity in April 2037, investors weigh high income against default risk and limited oil rally participation.