|Bid||10.91 x 27000|
|Ask||11.81 x 27000|
|Day's Range||11.37 - 11.61|
|52 Week Range||6.47 - 14.12|
|Beta (5Y Monthly)||1.59|
|PE Ratio (TTM)||N/A|
|Forward Dividend & Yield||0.14 (1.24%)|
|Ex-Dividend Date||May 07, 2020|
|1y Target Est||14.29|
Another disaster in the world of exchange-traded notes occurred Wednesday when the VelocityShares 3x Inverse Natural Gas ETN (OTC: DGAZF) entered the day with a net asset value of $121 from Tuesday only to trade as high as $25,000.What Happened: No, that $25,000 isn't a misprint and, no, that's not supposed to happen with exchange-traded products. First, some quick backstory on DGAZF arrived at this wild place.Back in June, Credit Suisse (NYSE: CS), the issuing bank behind the VelocityShares ETNs, announced it was delisting nine of those products from the Nasdaq and New York Stock Exchange. The old DGAZ being part of that group was largely overlooked because some gold and silver products were included on the list and those are among this year's best-performing commodities.The usual methodology of delisting is to close an ETF or ETN, but Credit Suisse moved the nine inverse and leveraged ETNs in question to over-the-counter trading, which is akin to allowing the products to die a slow death. With the benefit of hindsight, it's clear DAGZF should have been put out of its misery weeks ago."Although it is not currently accelerating the ETNs at its option, Credit Suisse AG continues to have the right to do so, as described in the pricing supplement for the ETNs," the bank said in a June statement.Why It's Important: Beyond the fact ETPs aren't supposed to trade tens of thousands of percent above their net asset values, the DGAZF is important for another reason. Fifty-seven delisted but still breathing ETNs with a combined $2.4 billion in assets under management are trading over the counter. That doesn't mean the DGAZF scenario repeat, but it doesn't mean it won't happen again, either.That's not the only bad news here. It seems Credit Suisse was collect fees by loaning out DGAZF shares to short sellers. This was a $400 product earlier this month, but in the span of a few days, it touched $25,000, potentially creating paper losses of as much as $300 million for short sellers.Not surprisingly, there's social media chatter that the Swiss bank could face litigation, though disclaimers could make a class action suit tricky for traders.What's Next: Apparently, Credit Suisse learned its lesson and is accelerating the closure of DGAZF and the eight other ETNs."As described in the Pricing Supplement, investors will receive a cash payment per ETN equal to the arithmetic average of the closing indicative values of the ETNs during the accelerated valuation period," according to the bank. "The accelerated valuation period will be a period of five consecutive index business days, which is expected to be from August 14, 2020 to August 20, 2020. The acceleration date is expected to be August 25, 2020, three business days after the last day of the accelerated valuation period."Basically, Credit Suisse is trying to give traders involved with DGAZF a decent exit package, if it's even possible at this point.See more from Benzinga * Industrials Become Intriguing With This ETF * Post-Pandemic Stars Could Align For This Biotech ETF * Why The Future Is Bright For The Work From Home ETF(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
(Bloomberg) -- Barely a month after delisting a suite of notorious exchange-traded notes, Credit Suisse Group AG will kill one off for good following a more than 6,000% price jump in over-the-counter trading.The leveraged inverse product tied to natural-gas futures surged as high as $25,000 on Wednesday from $400 on Aug. 4, creating havoc for traders still involved with the note. Several took to Twitter, claiming they faced huge margin calls to cover short positions.Confusion grew and questions mounted over the past week as the price surged. On Wednesday evening in New York, Credit Suisse announced it will “accelerate at its option” the VelocityShares Daily 3x Inverse Natural Gas ETN, known by the ticker DGAZF.In other words, the note will be shut down. Investors will be paid out at an average of its indicative value over several days, which was $124 on Thursday morning in New York versus a closing market price of $15,000 a day earlier.A spokeswoman for the bank declined to comment beyond the announcement.Read more: Notorious Cousins of the ETF Are Closing at Almost Record PaceThe drama is the latest twist in the saga of ETNs, a wonky cousin of exchange-traded funds that have become a magnet for controversy.They trade just like ETFs, but are in fact debt obligations backed by a bank often used to invest in hard-to-access assets. ETNs frequently use derivatives to amplify returns or deliver the inverse performance of whatever they track. In the case of DGAZF, it did both.The note was one of nine formally delisted by Credit Suisse on July 12 “to better align its product suite with its broader strategic growth plans,” according to the bank. UBS Group AG and Citigroup Inc. have also liquidated products this year.Margin CallsAs part of the delisting, Credit Suisse stopped creating new shares in the ETN, meaning it was likely to become untethered from the natural gas prices it tracks. The exact reasons behind the surge in DGAZF remain unclear, but the extremity of the move surprised industry watchers.“Historically there have been funds that had big premiums over the indicative value price when creations were halted,” said Vance Harwood at Six Figure Investing. “TVIX in 2012 is an example, but it ‘only’ went up 100%.”With the distorted price, most people with a short position could be expected to face margin calls, Harwood said.A trader who borrowed the note and sold it for around $500 a few weeks ago -- the first step in a short sale -- faced the daunting obligation of buying it back for more $10,000 in order to return shares to the lender. Brokers whose clients are caught in such a bind often demand more money to cover the swelling debt.DGAZF was a popular short thanks to the tendency of geared notes to steadily decline in value over time, and some 140,000 shares were shorted as of July 31, according to exchange-reported data compiled by Bloomberg.But it’s a high-risk business -- in a three-times leveraged note like DGAZF, a massive price jump could trigger a huge margin call for even a small short trade.“The $80 million who were short in DGAZF at end of July could have owed something like $2 billion,” said Eric Balchunas, an ETF analyst at Bloomberg Intelligence.Terminal users can read about the risks of other delisted ETNs in BI research.By liquidating the fund, Credit Suisse has effectively “rescued” any investors who had not yet covered their short positions, Harwood tweeted after the announcement. For those who covered at elevated prices “the story is a lot less clear.”For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
(Bloomberg) -- Credit Suisse Group AG plans to liquidate a leveraged inverse natural gas exchange-traded note that jumped in recent days and became disconnected from the value of its assets.The VelocityShares Daily 3x Inverse Natural Gas ETN, which had already seen securities issuance suspended on June 22 and been delisted from the NYSE Arca exchange on July 12, will be liquidated on Aug. 25, according to a statement from Credit Suisse. There are 305,400 securities outstanding, according to data compiled by Bloomberg.Read More: Triple-Leveraged Gas ETN’s 3,900% Premium Signals Broken PricingThe ETN has gone parabolic in the past few days. In recent years the price hadn’t risen above $600, but it advanced in each of the past five sessions with percentage increases of 35%, 34%, 29%, 223% and 400%, and closed on Wednesday at $15,000. That compares with the note’s net asset value of $124.01. The market cap is $4.58 billion, versus total assets of $37.9 million.Investors in the ETN will receive a cash payment per note equal to the average of the closing indicative value during a period of five consecutive business days expected to be Aug. 14-20, Credit Suisse said. A spokeswoman for Credit Suisse declined to comment further.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Credit Suisse AG ("Credit Suisse") announced today that it will accelerate at its option its VelocityShares™ 3x Inverse Natural Gas ETNs (the "ETNs"), which were previously delisted from the NYSE Arca.
Credit Suisse <CSGN.S> is looking to expand cooperation with insurers, Chairman Urs Rohner told a Sunday newspaper, adding the search for his successor at Switzerland's second-biggest bank was well under way.
Only the biggest foreign investors may buy Saudi stocks directly. Non-billionaires can find exchange-traded funds that focus on Mideast investments.
On August 3, 2020, Credit Suisse declared coupon payments for the following ETNs:
Credit Suisse <CSGN.S> CEO Thomas Gottstein wants to cut costs by 2% to 3% each year, he said in an interview published on Saturday, with savings put back into the bank's business. "Basically, like in the automotive industry, we want to be 2-3% more efficient every year," he told Swiss newspaper Finanz und Wirtschaft. With costs of around 17 billion Swiss francs ($18.63 billion), this meant around 400 million francs in annual savings, he said after Credit Suisse announced an overhaul of its investment bank and beat profit forecasts in its results on Thursday.
|Maintains||CFRA: to Hold||4/24/2020|
|Maintains||CFRA: to Hold||2/14/2020|
|Upgrade||Redburn: Sell to Neutral||11/20/2019|
|Upgrade||Exane BNP Paribas: Neutral to Outperform||8/30/2019|
|Downgrade||Morgan Stanley: Overweight to Equal-Weight||11/27/2018|
|Downgrade||RBC Capital: Outperform to Sector Perform||11/23/2018|
Sector(s): Financial Services
Full Time Employees: 48,800
Credit Suisse Group AG, through its subsidiaries, provides various financial services in Switzerland, Europe, the Middle East, Africa, the Americas, and Asia Pacific. It operates through Swiss Universal Bank, International Wealth Management, Asia Pacific, Global Markets, and Investment Banking & Capital Markets segments. The company offers private banking and wealth management solutions, including advisory, investment, financial planning, succession planning, and trust services; and financing and lending, and multi-shore platform solutions. It also provides traditional and structured lending, payment, foreign exchange, capital goods leasing, merger and acquisition, syndication, structured finance, commodity trade finance, trade finance, structured trade finance, export finance, factoring, fund management and administration, fund design, custody, ship and aviation finance, securities, cash, and treasury services. In addition, the company offers asset management products; equity and debt underwriting, and advisory services; cash equities, equity derivatives, and convertibles, as well as prime services; and fixed income products, such as credit, securitized, macro, emerging markets, financing, structured credit, and other products. Further, it provides HOLT, a framework for assessing the performance of approximately 20,000 companies; and equity and fixed income research services. The company serves private and institutional clients; ultra-high-net-worth individuals, high-net-worth individuals, and affluent and retail clients; corporate clients, small and medium-sized enterprises, external asset managers, financial institutions, and commodity traders; and pension funds, governments, foundations and endowments, corporations, entrepreneurs, private individuals, financial sponsors, and sovereign clients. As of December 31, 2019, it operated through a network of 344 offices and branches. The company was founded in 1856 and is based in Zurich, Switzerland.