Wednesday, 25 November 2015
Last updated 5 hours ago
Apr 18 2007 | 4:14pm ET
Hoping to lure institutional investors without commodity exposure into the asset class, Credit Suisse has issued US$190 million in long/short collateralized commodity obligations notes. The notes, which have received Fitch Ratings’ highest rating, are the first global long/short CCO transaction, according to CS.
“The combination of the long and short portfolio mitigates the risk to principal loss as well as mark-to-market value movements, whilst maintaining a yield substantially about most other AAA-rated instruments,” Gunnar Hoest, of CS’s fixed-income department, said. The notes, in five- and three-year tranches, were priced at a spread of 195 basis points and 180 bps over benchmark, respectively, and are available in U.S. dollar-, euro- and Australian dollar-denominations.
Buyers included banks, insurance companies and mutual funds, CS said, many of which have no experience with commodities exposure.
“It allows investors to put money in a balanced long and short basket of commodities in note form, diversifying their portfolios beyond the traditional credit and equities asset classes,” Bikran Chaudhury, also of the CS fixed-income department, said.
Oct 21 2015 | 10:41am ET
One of the most unique charity benefits in the hedge fund industry, A Leg To Stand On's (ALTSO's) Hedge Fund Rocktoberfest - NYC, raised nearly $500,000 last Thursday thanks to the generous support of major sponsors and nearly 1,400 attendees from the Tri-State finance, business and hedge fund communities. Read more…