Credit Suisse Adds Leveraged Merger Arb ETN (CSMB)

Credit Suisse announced the launch of its fourth ETN today, rolling out a product offering leveraged exposure to a merger arbitrage strategy. The 2x Monthly Leveraged Credit Suisse Merger Arbitrage Liquid Index ETN (CSMB) will be linked to an index consisting of stocks that are proposed takeover targets, delivering 2x leveraged exposure on a monthly basis. Credit Suisse debuted a merger arbitrage ETN in October 2010, and CSMA has seen assets grow to about $55 million since then. CSMB will be linked to the same index underlying CSMA, but will deliver monthly returns equal to 200% of the change in the underlying index over that month. A merger arbitrage strategy involves purchasing stocks of companies after a proposed acquisition is announced. Once a transaction is announced, there are still certain obstacles to completing a deal; there may be regulatory hurdles to be cleared or shareholder objections to a proposed deal [...] Click here to read the original article on ETFdb.com. Related Posts: Using ETFs To Access Alternatives ETF Pipeline Grows: More Hedge Fund Products, VIX ETNs In The Works Credit Suisse Launches Merger ETN (CSMA) IndexIQ Files For International Small Cap, Asian Tiger ETFs October ETF Roundup: Launches, Filings, and Closures