After it was halted for trading earlier in the day, which many saw as a harbinger of imminent termination – moments ago Credit Suisse confirmed retail vol sellers’ worst fears when it announced that it would indeed be “accelerating” the XIV ETN, i.e. terminating it. From Bloomberg:
- CREDIT SUISSE REPORTS EVENT ACCELERATION OF XIV ETNS
- CREDIT SUISSE AG ACCELERATION DATE IS EXPECTED TO BE FEB. 21
- CREDIT SUISSE SEES TO DELIVER IRREVOCABLE CALL NOTICE ON XIV
How much money will holders of the now defunct XIV get?
- CREDIT SUISSE: ETN INVESTORS TO GET CASH PMNT AT CLOSING VALUE
Which is bad news for XIV holders, because as we showed last night, the NAV of the ETN crashed to $4.22 yesterday from 108.36.
… effectively wiping it out, and assuring that longs get nothing in what was until recently one of the best performing investments in the market.
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