SEC Said to Review Credit Suisse Exchange-Traded Note

U.S. Securities and Exchange Commission investigators are reviewing a Credit Suisse Group AG exchange-traded note that became unhinged from its benchmark and whipsawed investors, a person familiar with the matter said.

The VelocityShares Daily 2x VIX Short-Term ETN, which seeks to provide twice the daily return of the VIX volatility index, climbed almost 90 percent above its asset value after the Zurich-based bank stopped issuing shares in February. The value of the note, which had risen to almost $700 million from about $163 million at the end of 2011, plunged last week when Credit Suisse said it would begin creating shares again.