CREDIT SUISSE GROUP CS S
November 30, 2022 - 10:45am EST by
Den1200
2022 2023
Price: 3.16 EPS 0 0
Shares Out. (in M): 4,000 P/E 0 0
Market Cap (in $M): 12,640 P/FCF 0 0
Net Debt (in $M): 0 EBIT 0 0
TEV (in $M): 0 TEV/EBIT 0 0
Borrow Cost: Available 0-15% cost

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Description

CSGN is the ticker for Credit Suisse in CHF (Swiss) and CS is ADR for Credit Suisse. Go long 1 share of CSGN and go short 1 share of CS. 

 

Spread trade  
CS 3.17
CSGN 2.842
USD.CHF 0.9526
Value CSGN in USD  $      2.98
Spread  $      0.19
Spread % 6.25%
Fee rate short CS 6.15% at IBKR
Margin rate  1.004% at IBKR

Basically, the credit suisse ADR and regular shares are equal. Around Nov 11 2022 they were trading close to 0% spread and have traded back and forth like that. Now due to the rights offering there is a spread that I think is way too large. Basically one makes about 6.25% for taking no risk, except that the spread lasts too long and the fee rate and margin rate eat your spread. I expect this to close soon.

 

I do not hold a position with the issuer such as employment, directorship, or consultancy.
I and/or others I advise hold a material investment in the issuer's securities.

Catalyst

Arbitrage

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