Credit Suisse Sells ‘FI’ Exchange-Traded Note Tied to Stocks

Credit Suisse Group AG (CSGN), Switzerland’s second-largest bank, is offering an exchange-traded note tied to the Russell 1000 Growth Index that’s similar to one issued by UBS AG (UBS), the country’s largest lender.

The Credit Suisse FI Enhanced Big Cap Growth (FIBG) securities, trading under the ticker FIBG, initially yield 1.62 times the gains and losses of the total return version of the index, according to a prospectus filed with the U.S. Securities and Exchange Commission. The amount of leverage can change over time.

UBS started trading its FI Enhanced Big Cap Growth ETN (FBG) under the ticker FBG in June last year, according to data compiled by Bloomberg. The ETNs track twice the gains and losses of the Russell benchmark, according to a prospectus filed with the SEC. Fisher Asset Management LLC, owned by billionaire investment adviser Ken Fisher, holds about 96 percent of the outstanding securities, according to the company’s latest filings.

Perrin Wheeler, a spokeswoman for Credit Suisse in New York, didn’t return a voicemail and an e-mail seeking comment on the notes. David Eckerly, a spokesman for Fisher Asset Management, declined to comment.

The Russell 1000 Growth Index, which tracks companies with the fastest earnings growth, climbed 23 percent this year to 812.23 at the close of trading today.

ETNs are unsecured bank debt backed by their issuer’s credit, unlike exchange-traded funds, which hold assets. Banks create and redeem shares of ETNs based on the level of demand for the securities.

To contact the reporter on this story: Kevin Dugan in New York at kdugan4@bloomberg.net

To contact the editor responsible for this story: Alan Goldstein at agoldstein5@bloomberg.net

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