Statement from Credit Suisse
One of the victims in yesterday’s rout was a volatility ETN that Credit Suisse had a 32% stake in. Rumours werea bound that the bank would be taking a big hit over it but they’ve issued a statement saying that they have not suffered any losses over it.
“Credit Suisse cinfirms that is has experienced no trading losses from Velocity Shares Daily Inverse Short Term ETN’s due December 4th 2030. The XIV ETN activity is reflective of today’s market volatility. There is no impact to Credit Suisse”
Apparently they were fully hedged on the product but what’s conspicious by their absence, is comments whether they have any customers who have lost big money on it.
Anyway, there’s always going to be big losers when we get volatile events like this. As we’ve said time and time again here, the longer a move goes without a retrace, the harsher it will be when one happens. Is it all over? Who knows, but on today’s performance in European equities, it suggests it isn’t. Here’s the current picture from the killing floor;
- FTSE -2.0%
- CAC -1.9%
- DAX -1.8%
- FTSE MIB -1.8%
- IBEX -2.2%
The VIX is still having fun sitting up in the 40’s still.
On the otherside, forex has been pretty much unscathed by comparison.