Following completion of the merger of UBS AG and Credit Suisse AG, Credit Suisse AG’s business was transferred to UBS AG, and Credit Suisse AG ceased to exist. At this time however, the two entities did not operationally merge and, as a result, we continue to have two sets of operational infrastructure and processes during this transitionary period.
Consequently UBS AG is now the sole parent entity and all direct subsidiaries of Credit Suisse AG have become direct subsidiaries of UBS AG, and all branches of Credit Suisse AG have been absorbed into existing or established as new branches of UBS AG (as the case may be). As such, Credit Suisse AG’s branches have been renamed as UBS Branches, with the exceptions of Credit Suisse AG, Taipei Securities Branch and Credit Suisse AG Shanghai Branch.
Click hereAll about the Parent Bank Merger for the latest updates on how we continue to serve clients.
The information provided, including any tools, services, strategies, methodologies and opinions, is expressed as of the date hereof and is subject to change. Credit Suisse Securities (USA) LLC and its affiliates ("CSSU") assumes no obligation to update or otherwise revise these materials. The information presented in this document has been obtained from or based upon sources believed by the trader or sales personnel or product specialist to be reliable, but CSSU does not represent or warrant its accuracy or completeness and is not responsible for losses or damages arising out of errors, omissions or changes or from the use of information presented in this document. This material does not purport to contain all of the information that an interested party may desire and, in fact, provides only a limited view. Any headings are for convenience of reference only and shall not be deemed to modify or influence the interpretation of the information contained.
Backtested, hypothetical or simulated performance results have inherent limitations. Simulated results are achieved by the retroactive application of a backtested model itself designed with the benefit of hindsight. The backtesting of performance differs from the actual account performance because the investment strategy may be adjusted at any time, for any reason and can continue to be changed until desired or better performance results are achieved. Alternative modeling techniques or assumptions might produce significantly different results and prove to be more appropriate. Past hypothetical backtest results are neither an indicator nor a guarantee of future returns. Actual results will vary from the analysis. Past performance should not be taken as an indication or guarantee of future performance, and no representation or warranty, expressed or implied is made regarding future performance.
This material has been prepared by personnel of CSSU and not by the CSSU research department. It is not investment research or a research recommendation, as it does not constitute substantive research or analysis. This document is not directed to, or intended for distribution to or use by, any person or entity who is a citizen or resident of or located in any locality, state, country or other jurisdiction where such distribution, publication, availability or use would be contrary to law or regulation or which would subject CSSU to any registration or licensing requirement within such jurisdiction. It is intended for institutional customers (e.g., QIBs) of CSSU only, is provided for informational purposes, is intended for your use only, does not constitute an invitation or offer to subscribe for or purchase any of the products or services mentioned, and must not be forwarded or shared with retail customers or the public. The information provided is not intended to provide a sufficient basis on which to make an investment decision. It is intended only to provide observations and views of certain personnel, which may be different from, or inconsistent with, the observations and views of CSSU research department analysts, other CSSU personnel, or the proprietary positions of CSSU. Observations and views expressed herein may be changed by the personnel at any time without notice. Trade report information is preliminary and subject to our formal written confirmation. This material may have previously been communicated to the CSSU trading desk or other CSSU clients. You should assume that the trading desk makes markets and/or currently maintains positions in any of the securities mentioned above.
CSSU may, from time to time, participate or invest in transactions with issuers of securities that participate in the markets referred to herein, perform services for or solicit business from such issuers, and/or have a position or effect transactions in the securities or derivatives thereof. To obtain a copy of the most recent CSSU research on any company mentioned please contact your sales representative or go to research-and-analytics.csfb.com.
FOR IMPORTANT DISCLOSURES on companies covered in Credit Suisse Investment Banking Division research reports, please see www.credit-suisse.com/researchdisclosures.
Nothing in this document constitutes investment, legal, accounting or tax advice or a representation that any investment strategy or service is suitable or appropriate to your individual circumstances. This document is not to be relied upon in substitution for the exercise of independent judgment. This document is not to be reproduced, in whole or part, without the written consent of CSSU.
HOLT Disclaimer
The HOLT methodology does not assign ratings or a target price to a security. HOLT is an analytical tool that involves use of publicly available, fact-based data and applies a set of proprietary quantitative algorithms and warranted value calculations against such data, collectively called the HOLT valuation model. The HOLT methodology is consistently applied to all the companies included in its database. The HOLT valuation model is a discounted cash flow model (DCF). The % upside/downside is the difference between HOLT’s default warranted price (as determined by an objective, systematic DCF framework) and a security’s most recent closing price, expressed as a percentage. Third-party data (including consensus earnings estimates) are systematically translated into a number of default variables and incorporated into the algorithms available in the HOLT valuation model. The source financial statement, pricing, and earnings data provided by outside data vendors are subject to quality control and may also be adjusted to more closely measure the underlying economics of firm performance. These adjustments provide consistency when analyzing a single company across time, or analyzing multiple companies across industries or national borders.
The default scenario that is produced by the HOLT valuation model establishes a warranted price that represents the expected mean value for a security based upon various factors, including the use of third-party data and empirically derived fade algorithms that forecast a firm’s future cash return on capital and growth rates over an extended period of time. A default set of algorithms apply to all the securities. As the data are updated, the warranted price updates automatically. A company’s future achieved return on capital or growth rate may differ from the result generated from the default scenario that is produced by the HOLT valuation model. Additional information about the HOLT methodology is available upon request.
HOLT is a corporate performance and valuation advisory service of Credit Suisse.
Structured Products
Structured securities are complex instruments, typically involve a high degree of risk and are intended for sale only to sophisticated investors who are capable of understanding and assuming the risks involved. The market value of any structured security may be affected by changes in economic, financial and political factors (including, but not limited to, spot and forward interest and exchange rates), time to maturity, market conditions and volatility, and the credit quality of any issuer or reference issuer. Any investor interested in purchasing a structured product should conduct their own investigation and analysis of the product and consult with their own professional advisers as to the risks involved in making such a purchase.
Options Disclaimer
Structured securities, derivatives and options are complex instruments that are not suitable for every investor, may involve a high degree of risk, and may be appropriate investments only for sophisticated investors who are capable of understanding and assuming the risks involved. Supporting documentation for any claims, comparisons, recommendations, statistics or other technical data will be supplied upon request. Any trade information is preliminary and not intended as an official transaction confirmation. Read the Options Clearing Corporation's disclosure document. Because of the importance of tax considerations to many option transactions, the investor considering options should consult with his/her tax advisor as to how taxes affect the outcome of contemplated options transactions.
Risks:
1. Call or Put Purchasing: The risk of purchasing a call/put is that you will lose the entire premium paid.
2. Uncovered Call Writing: The risk of selling an uncovered call is unlimited and may result in losses significantly greater than the premium received.
3. Uncovered Put Writing: The risk of selling an uncovered put is significant and may result in losses significantly greater than the premium received.
4. Call or Put Vertical Spread Purchasing (same expiration month for both options): The basic risk of effecting a long spread transaction is limited to the premium paid when the position is established.
5. Call or Put Vertical Spread Writing (same expiration month for both options): The basic risk of effecting a short spread transaction is limited to the difference between the strike prices less the amount received in premiums.
6. Call or Put Calendar Spread Purchasing (different expiration months & short must expire prior to the long): The basic risk of effecting a long calendar spread transaction is limited to the premium paid when the position is established.
ERISA Disclaimer
No information or communication provided herein or otherwise is intended to be, or should be construed as, a recommendation within the meaning of the U.S. Department of Labor’s final regulation defining "investment advice" for purposes of the Employee Retirement Income Security Act of 1974, as amended, and Section 4975 of the Internal Revenue Code of 1986, as amended, and the information provided herein is intended to be general information and should not be construed as providing investment advice (impartial or otherwise).
Equity Derivatives Tax Disclaimer
CSSU does not provide any tax advice. Any tax statement herein regarding any US federal tax is not intended or written to be used, and cannot be used, by any taxpayer for the purpose of avoiding any penalties. Any such statement herein was written to support the marketing or promotion of the transaction(s) or matter(s) to which the statement relates. Each taxpayer should seek advice based on the taxpayer's particular circumstances from an independent tax advisor.
Municipalities
CSSU is not acting and will not act as a municipal advisor within the meaning of Section 975 of the Dodd-Frank Wall Street Reform and Consumer Protection Act and the rules and regulations promulgated thereunder ("Municipal Advisor Rule"). Any services, material, or information that CSSU provides to a municipal entity or obligated person as defined by the Municipal Advisor Rule ("Covered Party") are provided on an arm’s length basis and not as an advisor or fiduciary to the Covered Party. CSSU does not intend to make a recommendation or suggestion to any Covered Party concerning municipal derivatives, the issuance of municipal securities, the use of guaranteed investment contracts, or investment strategies for the proceeds of municipal securities or municipal escrow investments. Covered Parties should consult with their own internal and external advisors before taking action with respect to any services, material, or information provided to them by CSSU.
CSSU will not solicit a Covered Party for direct or indirect compensation on behalf of an unaffiliated broker, dealer, municipal securities dealer, or municipal advisor for the purpose of obtaining or retaining an engagement for that broker, dealer, municipal securities dealer, or municipal advisor by the Covered Party for or in connection with municipal derivatives, the issuance of municipal securities, the use of guaranteed investment contracts, or investment strategies for the proceeds of municipal securities or municipal escrow investments. CSSU also will not solicit a Covered Party for direct or indirect compensation on behalf of an unaffiliated investment adviser for the purpose of obtaining or retaining an engagement for that investment adviser by the Covered Party to provide investment advisory services to or on behalf of the Covered Party.
European Market Abuse Regulation (Securities Traded on EU-Regulated Markets)
Please follow the attached hyperlink for important further information regarding conflicts of interest, disclosures, and a history of our "investment recommendations" as defined by MAR: https://rave.credit-suisse.com/disclosures/view/nr
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