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A sign sits illuminated inside the window of the Credit Suisse Group AG headquarters in Zurich, Switzerland, on Saturday, Dec. 24, 2016. Private consumption, which in the past has proved a key support to the Swiss economy, will probably grow at a slower pace in 2017, according to the UBS Consumption Indicator.(bloomberg)
(Bloomberg) -- Credit Suisse Group AG, the Swiss bank scaling down its trading unit, said it hasn’t suffered any trading losses related to exchanged-traded notes with which holders made bets on muted market swings.
“In response to certain media enquires, Credit Suisse confirms that it has experienced no trading losses from Velocity Shares Daily Inverse VIX Short Term ETNs due December 4, 2030,” the bank said in a statement on Tuesday.
Trading was halted in the ETN, which trades under the name XIV, according to a market statement on Tuesday, after the Cboe volatility index posted its biggest-ever rally. The surge in volatility has already claimed one victim: Nomura Europe Finance announced the early redemption of its Next Notes S&P 500 VIX Short-Term Futures Inverse Daily Excess Return Index ETN, which had 32.4 billion yen (about $300 million) in assets.
Credit Suisse fell as much as 8.5 percent in Zurich trading, before paring some of the losses. The shares were down 3.8 percent as of 12:03p.m.
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