Credit Suisse launches equity market neutral ETN

Sep 21st, 2011 | By | Category: Alternatives / Multi-Asset

Credit Suisse today announced the launch of its Equity Market Neutral ETN, the first ETN to provide exposure to an equity market-neutral strategy in an exchange traded format.

Credit Suisse launches equity market neutral ETN

Credit Suisse launches equity market neutral ETN

The [tippy title=”Credit Suisse Market Neutral Equity ETN”]Credit Suisse

The Market Neutral Equity Exchange Traded Notes are senior, unsecured debt securities issued by Credit Suisse AG linked to the return of HS Market Neutral Index.

The Index, powered by HOLT, is designed to provide exposure to a market neutral investment strategy.

The ETNs should be purchased only by knowledgeable investors who understand the potential consequences of investing in the ETNs.

Credit Suisse Market Neutral Equity ETN[/tippy] (NYSE Arca: CSMN) is the newest addition to Credit Suisse’s suite of alternative ETN products. The line-up targets the “alternatives” segment of investor portfolios by providing liquid access to some of the most popular alternative investment strategies.

The CSMN ETN tracks a market-neutral strategy as represented by the HS Market Neutral Index Powered by HOLT. The index is intended to achieve stable returns while reducing risk by selecting a portfolio of 75 long stocks and 75 short stocks from over 20,000 global equities.

The index uses Credit Suisse’s HOLT stock selection framework which incorporates factors including value and momentum.

“We believe market neutral strategies continue to garner interest from advisors for their risk/return profile and low correlation to market conditions. By providing the first market neutral strategy in an ETN format, we are helping investors to efficiently tap into alternative investment strategies,” said Greg King, Head of Exchange Traded Products at Credit Suisse.

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