Fri, Jun 22, 2018
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Several regulators are enquiring Credit Suisse ETN’s sudden plunge

Thursday, April 05, 2012

Benedicte Gravrand, Opalesque Geneva: FINRA, the Securities and Exchange Commission (SEC) and Massachusetts’s regulator are investigating Credit Suisse, the global private and investment bank headquartered in Zurich, about exchange-traded notes (ETN) that it re-issued last month.

Massachusetts's William Galvin asked Credit Suisse on March 23 for information on all purchases of the Credit Suisse-managed VelocityShares 2x Long VIX Short Term Exchange note (TVIX) from Feb. 20 to March 23, and said he wants to know why the bank re-issued the ETN on March 23. Credit Suisse has until April 5 to provide the information.

Indeed, on March 22, 2012, Credit Suisse announced its plans to reopen issuance of the TVIX on a limited basis. The bank had temporarily suspended further issuance of these ETNs on February 21 due to internal limits on the size of the ETNs. "At present, the ETNs are trading at a premium to their indicative value," said the announcement. Although apparently, the notes had began dropping on March 20, after having climbed to 134% more than its index during the previous three weeks.

The note, which is designed to track stock-market volatility, plunged that week, even though market volatility was little changed, Dow Jones ......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing

 



  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Paper: The performance of stocks actively pitched by hedge funds[more]

    Using a novel dataset drawn from investment conferences from 2008 to 2013, I show that hedge funds take advantage of the publicity of these conferences to strategically release their book information to drive market demand. Specifically, hedge funds sell pitched stocks after the conferences to ta

  2. North America - US fundraising for special purpose acquisition vehicles hits record this year[more]

    From AFR.com: Special purpose acquisition vehicles (spacs) are hitting the US market at the fastest rate on record, attracting the likes of Goldman Sachs and hedge fund investor Daniel Loeb for the two largest such deals in 2018. Spacs have raised $US4.5bn so far in 2018, the largest amount fo

  3. Investing - Man Group and AQR try to take aim at private equity industry, Hedge funds poised to be winners in AT&T-Time Warner deal[more]

    Man Group and AQR try to take aim at private equity industry From FT.com: The popularity of private equity investments has prompted asset managers such as Man Group and AQR to devise strategies that aim to replicate PE returns but at a much lower cost to investors. Both companies a

  4. News Briefs: David Stemerman's hedge fund holdings shrank before his run for governor, nvestment manager TSW triggers succession plan, Alan Howard joins Peter Thiel investing in Cologne-based fintech startup[more]

    David Stemerman's hedge fund holdings shrank before his run for governor But the U.S. holdings of Stemerman's Greenwich hedge fund, Conatus Capital, shrank from $2.6 billion at the apex to just over $1 billion before he announced his move into politics. (Hartford Courant) Inv

  5. British Empire: Pershing's 23% discount 'unsustainable'[more]

    From Citywire: The wide discount on Pershing Square Holdings (PSH) is 'unsustainable' and puts star hedge fund manager Bill Ackman under pressure, says British Empire (BTEM). Pershing is the third largest holding in the £850 million British Empire trust, managed by Joe Bauernfreund, which sp