The ETN that grew too fast

The ETN that grew too fast

Paul Justice

In the space of four trading days in late March, shares in a Credit Suisse exchange-traded note (ETN) collapsed from $15.13 to $5.88 – a 61% drop that dwarfed the 35% fall in the underlying index the product was meant to track. That has left some investors planning legal action and regulators trying to work out exactly what happened. But for now, rival dealers offer their own, blunt explanation – that the product became a victim of its own success.

“The Credit Suisse ETN is an extremely volatile

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