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
Risk comparisons must be made easier under Priips KID, says AMF
JAC calls on regulators to co-ordinate cost disclosure rules in KID with Mifid II
Capital-at-risk product comes with an unusually long 10-year maturity
Issuer’s capital-at-risk product with quarterly coupons reviewed
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.