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Credit Suisse Unveils Geared Merger Exchange Traded Note

The 2x Monthly Leveraged Credit Suisse Merger Arbitrage Liquid Index (Net) ETN aims to offer 2x monthly leveraged exposure to the merger arbitrage strategy as represented by the Credit Suisse Merger Arbitrage Liquid Index (Net).

Credit Suisse is launching a double exposure exchange-traded note (ETN). The 2x Monthly Leveraged Credit Suisse Merger Arbitrage Liquid Index (Net) ETN aims to offer 2x monthly leveraged exposure to the merger arbitrage strategy as represented by the Credit Suisse Merger Arbitrage Liquid Index (Net).

The ETN is designed to have lower volatility than equity markets and low correlation to them. It aims to capture the spread between the price at which the stock of a target company trades after a proposed acquisition is announced and the price which the acquiring company will pay, adds Index Universe.

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