Credit Suisse has FX Factor

Swiss dealer Credit Suisse has launched its FX Factor index, which is designed to provide exposure to a portfolio of macroeconomic and market-driven FX strategies comprising carry, momentum, valuation, growth, terms of trade and emerging markets. The bank will offer structured products such as delta-1 trackers and capital protected trades linked to the index.

The index aims to outperform other FX indexes by providing exposure to the six strategies. The bank claims the strategies have low correlation between one another, and collectively exhibit low correlation to traditional equity, bond and commodity investment return. Exposure to the different strategies adjusts dynamically to changing market conditions while risk is controlled and monitored via a volatility target and maximum limits are set on individual currency exposures.

The index uses 18