ZURICH (Reuters) - Credit Suisse (S:CSGN) reiterated on Tuesday that it faced no material impact from a sharp drop overnight in the VelocityShares Daily Inverse VIXShort-Term ETN (P:XIV) product, in which it has a 32 percent stake.
"The XIV ETN activity is reflective of today's market volatility. There is no material impact to Credit Suisse," a spokesman said. The bank's exposure was fully hedged.
Monday's stock market rout left two of the most popular exchange-traded products (ETPs), which investors use to benefit from calm rather than volatile conditions, facing potential liquidation, market participants said. [nL4N1PW1ZX]