Three exchange-traded funds (ETFs) based on the total return of short European credit derivatives index positions begin trading this week.The Deutsche Bank funds are structured as ETFs, although they will initially be available only through over-the-counter products. The bank said they would also be listed on Borsa Italiana by the end of the month.
The ETFs track the short total return iTraxx Europe, HiVol and Crossover five-year indexes, which were also released by the Frankfurt-based International Index Company (IIC) today. They aim to reflect the total returns from short positions in the three respective indexes of European credit default swaps. London-based data provider Markit will act as calculation agent for the indexes.
Deutsche Bank said the funds would provide a way for European investors to obtain credit protection in ETF format for the first time. It expects the funds, which are Ucits III compliant, to be popular with corporates, insurers and asset managers.
Both Deutsche Bank and BNP Paribas hold licences to operate ETFs based on the IIC’s other indexes.
More on Structured Products
Lower deposit rates will force investors to take more risk
Software from Calastone seeks to bring structured products into the digital age
Regulation and low interest rates pose greatest challenge
Tim Mortimer on the value of put options in structuring
Sign up for Risk.net email alerts
Sponsored video: Tradeweb
Multifonds talks to Custody Risk on being nominated for the Post-Trade Technology Vendor of the Year at the Custody Risk Awards 2014
Sponsored webinar: IBM Risk Analytics
Nominated for two technology awards
There are no comments submitted yet. Do you have an interesting opinion? Then be the first to post a comment.