Credit Suisse S&P MLP Index ETN (MLPO)

The Credit Suisse S&P MLP Index ETN was an exchange traded note that tracked the S&P MLP Index, a benchmark of master limited partnerships and similar companies in the energy infrastructure business. Those businesses mostly own pipelines, storage terminals, gathering systems and processing plants for crude oil, natural gas and refined products. The notes traded on NYSE Arca under the symbol MLPO and paid a variable quarterly coupon tied to the cash distributions of the index components, minus the investor fee charged by the issuer.

Unlike an exchange traded fund, an ETN does not hold a basket of securities. MLPO was a senior unsecured debt obligation of Credit Suisse AG, acting through its Nassau Branch, so holders were exposed to the credit risk of the bank as well as to the performance of the index. The structure appealed to some investors because it delivered MLP exposure with a single Form 1099 instead of the Schedule K-1 partnership tax forms that direct owners of MLP units receive.

Credit Suisse launched the notes in early December 2014, a time when energy partnerships were popular income investments. The timing proved difficult, as the oil price collapse that began in 2014 weighed on midstream valuations for several years, and the sector was hit hard again during the 2020 pandemic. The notes had a stated maturity in December 2034, but the terms allowed the issuer to call them early, and holders could also redeem large blocks directly with the bank.

After UBS took over Credit Suisse in June 2023, the combined group began winding down parts of the Credit Suisse exchange traded note lineup. On October 19, 2023, Credit Suisse announced that it would call all outstanding MLPO notes and suspended further issuance the same day. The call valuation period ran from October 30 through November 3, 2023, and NYSE Arca was expected to allow trading through November 7, 2023.

Holders received a cash call settlement amount on November 8, 2023, equal to the average closing indicative value of the notes over the five-day valuation period, adjusted for any stub coupon and fees. The notes were then removed from NYSE Arca. Investors who still want exposure to midstream partnerships now use other listed products, such as the Alerian MLP ETF, the Global X MLP ETF and various ETNs and funds that track energy infrastructure indexes.