Deutsche Bank's db x-tracker platform for exchange traded funds (ETFs) has announced the launch list...
Deutsche Bank’s db x-tracker platform for exchange traded funds (ETFs) has announced the launch listing four long and short Markit iTraxx Europe Financials indices-based ETFs.
The four new UCITS III compliant EFTs are based on credit indices developed by Markit and listed on the Deutsche Bourse.
They allow clients to buy and sell credit protection on senior and subordinated financial debt in an ETF format for the first time, sidestepping the need to enter into derivatives contracts.
Thorsten Michalik, head of db x-trackers, said: “The listing of the first long and short financials senior and subordinated Markit iTraxx ETFs highlight the innovative products that db x-trackers bring to the market.
“Last year we launched the first six ETFs on long and short Markit iTraxx Europe HiVol and Crossover indices and they proved to be very successful raising assewts under management of €600m.”
The Markit iTraxx Europe Financials indices measure the return for a credit protection buyer (short) or seller (long) holding the most recent on-the-run 5-year Markit iTraxx Europe Financials credit default swap.
The indices are calculated on a total return basis which means that they accrue the residual investment not dedicated to credit exposure at the EONIA interest rate.
Marco Montanari, head of fixed income ETFs, db x-trackers, added: “These ETFs allow investors to buy and sell protection on senior and subordinated financials debt without entering into a derivative contract but rather by buying a regulated and flexible UCITS III fund listed on a stock exchange.”
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