"Credit Suisse suspended the creation of new stock in the VelocityShares Daily 2x VIX Short-Term ETN on Feb. 21 after its market value more than quadrupled in 2012 to a record $694.4 million, data compiled by Bloomberg show. Shares outstanding have surged 699 percent since Dec. 30 as the S&P 500 climbed 8 percent and posted its best January gain since 1997.
Demand for products that let investors hedge has surged during a four-month rally in global stocks. The Credit Suisse note tracks a gauge linked to the Chicago Board Options Exchange Volatility Index, or VIX, which moves in the opposite direction of the S&P 500 about 80 percent of the time. The structure of the ETN known as the TVIX (TVIX) makes it harder for Credit Suisse to offset risk. "
Saturday, February 25, 2012
Hedging Demand Halts Issuance of Credit Suisse VIX Note: Options - Bloomberg: