The Swiss bank’s decision earlier this week to dramatically cut back its exchange-traded notes (ETN) business, following the delisting of nine ETNs with close to US$3 billion in assets under management and the suspension of further issuances, shows the hit taken by this part of the US$4.4 trillion US exchange-traded products industry.
As part of its continuing effort to monitor and manage its suite of exchange traded notes, Credit Suisse has decided to delist the foregoing ETNs to better align its product suite with its broader strategic growth plans, stated the bank in an announcement. The recent pandemic-fuelled market turmoil has put ETNs under a bad light because of their vulnerability to extreme market swings and losses. Those with geared (leverage/inverse) exposure were laid bare earlier this year, when a number of pro