NEW YORK, July 13, 2016 /PRNewswire/ -- Credit Suisse
today announced the launch of its X-LinksTM Monthly
Pay 2xLeveraged Mortgage REIT ETN, which is listed on NYSE Arca
under the ticker symbol "REML" and will begin trading this
morning.
REML Profile
ETN Ticker
|
REML
|
Underlying
Index
|
FTSE NAREIT All
Mortgage Capped Index (price return)
|
Index
Ticker
|
FNMRC
|
Leverage
|
2x
|
2x Index
Yield1
|
21.79%
|
Income
Potential
|
Variable monthly
coupon2
|
Tracking
Rate
|
0.50% per annum,
accrued on a daily basis3
|
Financing
Rate
|
3 Month LIBOR + 0.80%
per annum, accrued on a daily basis3
|
Indicative Value
Ticker4
|
REMLIV < INDEX
> (Bloomberg) / ^REML-IV (Yahoo! Finance)
|
|
1 The 2x
Index Yield was calculated by the Index Sponsor as of July 6, 2016
and represents two (2) times the weighted-average of the 12-month
dividend yields of the current Index Constituents. The comparable
12-month yield of the ETNs is affected by a variety of factors, and
at any given time may be less than the 2x Index Yield at such
time.
|
|
2
Investors are not guaranteed any coupon or distribution amount
under the ETN. Any payment on the ETNs is subject to our ability to
pay our obligations as they become due.
|
|
3 In
addition to the Accrued Tracking Fee (based on the Tracking Rate)
and Accrued Financing Charge (based on the Financing Rate), if your
ETNs are redeemed directly with Credit Suisse, you will be charged
a Redemption Fee. Please see the pricing supplement for disclosure
of fees and charges. Please consult your financial advisor to learn
more about the costs associated with the purchase or sale of this
ETN in the secondary market.
|
|
4 The
Intraday Indicative Value and the Closing Indicative Value will be
published on each Trading Day under the Bloomberg ticker symbol
"REMLIV < INDEX >" and under the Yahoo! Finance ticker
symbol "^REML-IV". The "indicative value" for the ETNs is designed
to reflect the economic value of the ETNs at a given time. The
indicative value is a calculated value and is not the same as the
trading price of the ETNs and is not a price at which you can buy
or sell the ETNs in the secondary market. The indicative value does
not take into account the factors that influence the trading price
of the ETNs, such as imbalances of supply and demand, lack of
liquidity and credit considerations. The actual trading price of
the ETNs in the secondary market may vary significantly from their
indicative value. Investors can compare the trading price (if such
concurrent trading price is available) of the ETNs against the
indicative value to determine whether the ETNs are trading in the
secondary market at a premium or a discount to the economic value
of the ETNs at any given time. Investors are cautioned that paying
a premium purchase price over the indicative value at any time
could lead to the loss of any premium in the event the investor
sells the ETNs when such premium is no longer present in the market
place or your ETNs are repurchased by us (including if we exercise
our right to call the ETNs). It is also possible that the ETNs will
trade in the secondary market at a discount below the indicative
value and that investors would receive less than the indicative
value if they had to sell their ETNs in the market at such
time.
|
About REML and the FTSE NAREIT All Mortgage Capped
Index
REML provides a monthly compounded, 2x leveraged long exposure
to the price return version of the FTSE NAREIT All Mortgage
Capped Index (the "Index") and may pay a variable monthly
coupon linked to the net cash distributions, if any, of the
Index Constituents. The Index measures the performance of
tax-qualified U.S. mortgage REITs. FTSE International Limited
("FTSE"), the Index Sponsor, selects the Index Constituents and, in
its capacity as Index Calculation Agent, calculates the
Index. Levels for the price return version of the Index are
disseminated real-time under the Bloomberg ticker symbol "FNMRC"
and the Reuters instrument code ".FTFNMRC". The Index was launched
on December 19, 2008 and, therefore,
has no performance history prior to that date.
"REML provides leveraged exposure to a diversified portfolio of
tax-qualified U.S. mortgage REITs," said Paul Somma, Head of Exchange Traded Notes at
Credit Suisse. "It is designed for investors who are familiar with
mortgage REITs and the risks of leveraged investments and are
attracted by the yield opportunity offered by this investment."
More information on the Credit Suisse X-Links Monthly Pay
2xLeveraged Mortgage REIT ETN can be found on:
www.credit-suisse.com/etn
The ETNs may not be suitable for all investors and should be
purchased only by knowledgeable investors who understand the
potential consequences of investing in the ETNs. The ETNs are
subject to the credit risk of Credit Suisse. You may receive less,
and possibly significantly less, than the principal amount of your
investment at maturity or upon repurchase or sale. There is no
actual portfolio of assets in which any investor in the ETNs has
any ownership or other interest. An investment in the ETNs involves
significant risks. For further information regarding risks, please
see the section entitled "Risk Factors" in the applicable pricing
supplement.
Credit Suisse AG
Credit Suisse AG is one of the world's leading financial services
providers and is part of the Credit Suisse group of companies
(referred to here as 'Credit Suisse'). As an integrated bank,
Credit Suisse offers clients its combined expertise in the areas of
private banking, investment banking and asset management. Credit
Suisse provides advisory services, comprehensive solutions and
innovative products to companies, institutional clients and
high-net-worth private clients globally, as well as to retail
clients in Switzerland. Credit
Suisse is headquartered in Zurich
and operates in over 50 countries worldwide. The group employs
approximately 47,760 people. The registered shares (CSGN) of Credit
Suisse's parent company, Credit Suisse Group AG, are listed in
Switzerland and, in the form of
American Depositary Shares (CS), in New
York. Further information about Credit Suisse can be found
at www.credit-suisse.com.
Credit Suisse AG ("Credit Suisse") has filed a registration
statement (including prospectus supplement and prospectus) with the
Securities and Exchange Commission, or SEC, for the offering to
which this press release relates. Before you invest, you
should read the applicable Pricing Supplement, the Prospectus
Supplement dated May 4, 2015 and
Prospectus dated May 4, 2015, to
understand fully the terms of the ETNs and other considerations
that are important in making a decision about investing in the
ETNs. You may get these documents without cost by visiting EDGAR on
the SEC website at www.sec.gov. Alternatively, Credit Suisse,
Credit Suisse Securities (USA) LLC
or any agent or dealer participating in an offering will arrange to
send you the applicable Pricing Supplement, Prospectus Supplement
and Prospectus if you so request by calling +1 800 320 1225.
REML:
Pricing Supplement dated July 12,
2016, including the Prospectus dated May 4, 2015 and Prospectus Supplement dated
May 4, 2015:
https://notes.credit-suisse.com/csfbnoteslogin/etn/prospectus.asp?Ticker=REML
You may access the Prospectus Supplement and Prospectus on the
SEC website at www.sec.gov or by clicking on the hyperlinks to each
of the respective documents incorporated by reference in the
Pricing Supplement.
Copyright © 2016, CREDIT SUISSE GROUP AG and/or its affiliates.
All rights reserved.
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SOURCE Credit Suisse AG