Credit Suisse is seeking to launch a leveraged version of its merger arbitrage exchange-traded note.
Credit Suisse is seeking to launch a leveraged version of its merger arbitrage exchange-traded note (ETN), Risk.net reports. The 2x Monthly Leveraged Credit Suisse Merger Arbitrage Liquid Index will be listed on the New York Stock Exchange later in February 2011.
The portfolio tracks an index that gives exposure to mergers and acquisitions by mechanically targeting and buying the company that is about to be acquired, while shorting the acquiring company. The first listed hedge fund replicator in the U.S. will reset on a monthly basis and has a 20-year maturity.