T-Vix (“Tea-Vicks”). The Exchange Traded Note, or ETN, was issued by Credit Suisse (NYSEArca:CS) and designed as a vehicle for trading the volatility of the S&P 500 (^VIX) on a levered basis. In theory, if the VIX rose 10% in a day the TVIX would gain twice that amount.
Over the last two days the TVIX lost over 40% of its value. The implosion of the TVIX casts a light on the murky underbelly of the ETF and ETN industry.
See the full “Breakout” interview below: