Credit Suisse CEO Says Volatility Products 'Form a Useful Purpose'

The transcript discusses an ETN designed for sophisticated investors to manage daily trading risks. It emphasizes that the ETN is not suitable for long-term investment due to its potential to lose significant value quickly. The ETN's structural issues led to its closure, as it could not recover value after a market shift. The decision to close the ETN was made to protect investors, and similar products exist to help manage market risks.

What is the primary purpose of the ETN product discussed in the video?

• A retirement fund option

• A savings account alternative

• Daily trading tool for sophisticated investors

• Long-term investment for retail clients

Why is the ETN product not recommended for holding beyond one day?

• It is not available for purchase after one day

• It incurs high transaction fees

• It offers low returns

• It has a zero long-term value

What caused the ETN product to lose a significant portion of its value?

• A change in the VIX index

• A sudden drop in the stock market

• A new government regulation

• An increase in interest rates

What was the main reason for closing the ETN product?

• To launch a new product

• To merge with another financial product

• To protect investors due to its devaluation

• To comply with new regulations

What role do similar products play in the market?

• They are primarily for retail investment

• They serve as risk management tools

• They are used for tax evasion

• They are designed for long-term savings