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
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