CSMA: Can Merger Arbitrage Be Indexed?

Credit Suisse Merger Arbitrage Liquid Index ETN (CSMA) began trading October 4, 2010.  These ETNs are senior unsecured debt designed to provide investors with the returns of the Credit Suisse Merger Arbitrage Liquid Index.  The index attempts to capture the spread between the target company’s price after an announced acquisition and the acquiring company’s proposed price for the target. For stock based acquisitions, the index strategy will typically purchase the target company and short-sell an equivalent value of the acquiring company.  For cash acquisitions, the strategy can be implemented by simply buying the stock of the target company.  CSMA has an annual investor fee of 0.55%.  The overview page includes tabs for current index components and links to the fact sheet and prospectus. Instead… . . . → Full Story: CSMA: Can Merger Arbitrage Be Indexed?