Credit Suisse (NYSE:CS US) announced Monday that it had launched a new vehicle “to offer investors access to the merger arbitrage strategy in a liquid, exchange traded format.”
The Credit Suisse Merger Arbitrage Liquid Index (Net) ETN (NYSE Arca: CSMA), offers an exchange traded approach to gaining exposure to the merger arbitrage strategy through a quantitative methodology. This offers, among other advantages, real-time pricing, intraday liquidity and full portfolio transparency.
The ETN is being launched by Credit Suisse’s investment banking division on one of the Asset Management Liquid Alternative Beta Indices.
"Historically, merger arbitrage strategies have provided attractive risk-adjusted returns, effectively allowing investors to diversify their equity exposure,” said Michael Clark in a statement. Clark is head of the structured equity derivatives desk in Credit Suisse’s investment bank that is launching the ETN. “[H]owever, complex structures and infrequent liquidity have made this sector difficult to access. We are excited to offer a product which provides liquid access to this strategy, especially in the current volatile market environment."
The ETN is the second in a suite of alternative ETN products; the first is the existing Credit Suisse Long/Short Liquid Index (Net) ETN (NYSE Arca: CSLS).