Deutsche Bank has created a proxy inflation index that seeks to mirror inflationary trends in Asia excluding Japan by using a combination of inflation in Europe, the US and Japan, and commodity exposures in food and metals.
Asia’s inflation-linked bond market (excluding Japan) is underdeveloped, says the German bank, and the db Asian Inflation Proxy Index would make up for this shortfall. The index allocates fixed weightings of European, US and Japanese inflation and commodity components that have been shown to closely track Asian inflation, as measured by the International Monetary Fund’s Asian inflation index.
Institutional and high-net-worth investors can bet against the index in various principal-protected formats or swaps, which are available in both US dollar and Asian currencies.
Topics: Deutsche Bank
More on Structured Products
New product issuance in Europe could dry up as result of overbearing new rules, says Graf
Income plan offers potential coupons of over 40% on FTSE 100, S&P 500 and Euro Stoxx 50
Technical discussion paper on Priips-KID risk indicators leaves firms uncertain about final methodology
Providers fear new data requirements may herald future enforcement actions and regulation
Sign up for Risk.net email alerts
Sponsored video: MarketAxess
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
There are no comments submitted yet. Do you have an interesting opinion? Then be the first to post a comment.