Credit Suisse Launches Innovative Emerging Market Fixed Income Indices, Offering Investors Enhanced Access to the Market for EM Sovereign Credit as well as Broad Benchmark Exposure to Local Currency Bond Markets
NEW YORK, March 30, 2011 /PRNewswire/ -- Credit Suisse has launched two new Emerging Market (EM) fixed income indices that can help global investors gain enhanced exposure to EM sovereign credit and broad access to local currency debt markets.
The two new indices take distinct, yet complimentary, approaches to investing in Emerging Market sovereign debt. The Credit Suisse Emerging Markets Credit Opportunity (EMCROP) index aims to generate superior risk-adjusted performance by systematically identifying mispricing in EM sovereign credit spreads and tactically adjusting overall market exposure, while the Credit Suisse Emerging Market Local Currency Sovereign Bond Index (CSEMLC) provides broad benchmark exposure to EM sovereign debt.
The Credit Suisse Emerging Markets Credit Opportunity Index (EMCROP) is an investment strategy designed to benefit from mispricing in EM sovereign credit spreads relative to their macroeconomic and credit fundamentals. The strategy sells credit default swap (CDS) protection on up to six EM sovereign credits and rebalances its exposure quarterly. Selection of sovereign credits is based on country-level fundamentals and credit exposure is adjusted according to the Credit Suisse Extreme Flow Indicator, a proprietary medium-term timing indicator. For "risk-on" periods, the strategy invests in the selected CDS contracts, in "risk-off' periods, the strategy stays neutral. The Credit Suisse EMCROP can be accessed on the Bloomberg Professional® service by typing EMCPERUS < Index >.
The Credit Suisse Emerging Market Local Currency Sovereign Bond Index (CSEMLC) provides a benchmark for EM sovereign debt that represents the characteristics, pricing and total return performance of the EM sovereign universe. Broad selection criteria are used to determine the list of countries whose debt is eligible for the index, and the weighting of any one country in the index is capped at 10%. All bonds in the CSEMLC Index are selected according to a fully transparent set of rules-based inclusion criteria regarding issue size, bond type, maturity and liquidity. Daily returns for the CSEMLC can be accessed on the Bloomberg Professional® service by typing EMLC < GO >.
Mike Hodgson, Head of Fixed Income for the Emerging Markets Group at Credit Suisse, said, "These new indices reinforce our position as a leading franchise in Emerging Markets and exemplify our cutting-edge research in developing transparent, liquid strategies. With EMCROP, we now offer investors convenient alpha exposure to EM sovereign credit, while CSEMLC provides a benchmark for EM local currency bond markets."
Credit Suisse Alpha Strategies
The Alpha Strategies team pools expertise from individual product areas across Credit Suisse and delivers cutting edge systematic alpha strategies in Commodities, EM, Equities, FX and Rates. The team's suite of investable index strategies provides investors with a broad set of liquid, transparent alpha sources to help them achieve their investment goals. Calculation and maintenance of the team’s alpha indices is carried out independently by the Credit Suisse Index Products team.
Credit Suisse Index Products
Credit Suisse provides a comprehensive family of cross-asset tradable and benchmark indices that allow investors to efficiently track fixed income markets and sectors as well as access algorithmic and customized strategies. The constantly expanding lineup includes more than 50 indices that take innovative approaches to investing in commodities, foreign exchange, credit and interest rate strategies.
Credit Suisse indices are built to maintain strong foundation of accessibility, transparency and liquidity, making them useful for a broad cross section of investors. The Credit Suisse Liquid Fixed Income Workbench is a user-friendly web-based application that enables access to a full range of index data and analytics, with measures on the aggregate, sub-index and constituent level and customized information across asset classes, ratings, maturities and regions. Index data is also available on the Bloomberg Professional® service at CSLI < GO >.
The Index Products Group also works with clients to build bespoke tradable indices that leverage the strategies, analytical capabilities, trading desks and market reach from across Credit Suisse. This customized index framework is distinguished by Credit Suisse’s scalable and flexible infrastructure, calculation framework and data controls.
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 50,100 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.
In its Investment Banking business, Credit Suisse offers securities products and financial advisory services to users and suppliers of capital around the world. Operating in 57 locations across 30 countries, Credit Suisse is active across the full spectrum of financial services products including debt and equity underwriting, sales and trading, mergers and acquisitions, investment research, and correspondent and prime brokerage services.