FVC review: Credit Suisse’s long-dated S&P 500 leveraged return
Future Value Consultants evaluates the pros and cons of a long-dated leveraged return plan tied to the S&P 500 from Credit Suisse, which struck in November
Struck in November, Credit Suisse's long-dated structured note linked to the performance of the S&P 500 is a classic example of a product being used to alter the risk and reward profile of an underlying by locking in the investment for a given maturity – 10 years in this case. Unlike an equivalent index-tracking fund product, it offers leveraged returns and some downside protection balanced against the cost of forfeiting dividend payments, gaining credit exposure and being locked into a fixed
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