Credit Suisse after Thursday’s closing bell said it would reopen TVIX share issuance on a limited basis.
Stopping share creation can hinder the arbitrage mechanism that keeps the ETN share price in line with the value of the underlying portfolio. Demand for TVIX and GAZ led to premiums because there was limited share supply. ETNs are debt instruments issued by banks designed to pay the return of an index.
After the swift decline in TVIX, traders are wondering if the GAZ premium could be next.
iPath Dow Jones-UBS Natural Gas ETN
