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.
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