XIV hedging rule helped protect Credit Suisse

Photo of Credit Suisse — Credit Suisse experienced no trading losses when XIV collapsed

Tweet
Facebook
LinkedIn
Save this article
Send to
Print this page

Constraints imposed on the creation of new units of Credit Suisse’s short-volatility exchange-traded note (ETN) in mid-2016 helped the bank escape losses when the product collapsed yesterday.

The VelocityShares Daily Inverse Vix Short-Term ETN (XIV) lost 86% of its value – dropping from $109 to $99 at the close of US markets, before collapsing to $15 in after-hours trading – in response to the largest single-day fall in US stock prices since August 2011. The note was tracking a basket of Vix

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact [email protected] or view our subscription options here: http://subscriptions.risk.net/subscribe

You are currently unable to print this content. Please contact [email protected] to find out more.

You are currently unable to copy this content. Please contact [email protected] to find out more.

You may share this content using our article tools. Printing this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/

If you would like to purchase additional rights please email [email protected]

You may share this content using our article tools. Copying this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/

If you would like to purchase additional rights please email [email protected]