Thursday, 27 November 2014
Last updated 1 day 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.
Nov 4 2014 | 9:45am ET
Data management is important to every business, but for hedge funds, it is critical. FINalternatives recently asked Peter Sanchez, CEO of Northern Trust Hedge Fund Services, how fund managers can deal with the demands of managing data while at the same time remain transparent and abide by operational best practices. Read more…
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