Credit Suisse, begun trading the first 2x Mortgage REIT ETN, the Credit Suisse X-Links Monthly Pay 2xLeveraged Mortgage REIT ETNs (Nyse Arca: REML) on Wednesday, July 13, 2016.
Here is a synopsis of the new ETF:
|Exchange: NYSE ARCA
|Name: Credit Suisse X-Links Monthly Pay 2xLeveraged Mortgage REIT ETNs
|Net Expense Ratio: 0.50%
The Credit Suisse X-Links Monthly Pay 2xLeveraged Mortgage REIT ETNs aim to provide a monthly compounded 2x leveraged long exposure to the price return version of the FTSE NAREIT All Mortgage Capped Index, reduced by the Accrued Fees.
The ETNs are senior unsecured obligations of Credit Suisse AG, acting through its Nassau Branch, and mature on July 11, 2036. The ETNs may pay a monthly Coupon Amount during their term linked to two times the net cash dividends or distributions, if any, on the Index Constituents.
However, the ETNs do not guarantee any return of your investment and may not pay any coupon. For each ETN you hold, unless earlier redeemed or called, investors will receive a cash payment on the Maturity Date that will be based upon the monthly compounded leveraged performance of the Index, less the Accrued Fees. Investors should not purchase the ETNs unless they are willing to risk the loss of up to 100% of their investment.
The FTSE NAREIT All Mortgage Capped Index measures the performance of tax-qualified U.S. mortgage real estate investment trusts (Mortgage REITs) with more than 50% of total assets invested in mortgage loans or mortgage-backed securities secured by interests in real property, as selected and ranked by the FTSE International Limited (Index Sponsor) in accordance with the Index methodology. Each Index Constituent must, among other requirements, be a tax-qualified Mortgage REIT that is listed on the New York Stock Exchange, the NYSE Arca or the NASDAQ National Market List.
As of July 6, 2016, the Index included 38 Index Constituents.
Index Top Holdings (07/06/16):
|Annaly Capital Management REIT Inc.
|American Capital Agency REIT Corp.
|Starwood Property Trust REIT Inc.
|New Residential Investment REIT Corp.
|Two Harbors Investment REIT Corp.
|Chimera Investment Corp.
|MFA Financial Inc.
|Blackstone Mortgage Trust REIT
|Colony Capital Inc.
REML Home Page
Category: Real Estate> Regions> USA> US R.E. Subsectors
Here is a comment from Paul Somma, Head of Exchange Traded Notes at Credit Suisse:
“REML provides leveraged exposure to a diversified portfolio of tax-qualified U.S. mortgage REITs. It is designed for investors who are familiar with mortgage REITs and the risks of leveraged investments and are attracted by the yield opportunity offered by this investment.”