Deutsche offers new ETCs with gold collateral

The firm's latest db ETC products based on non-precious metals are backed by physical gold, to fully collateralise the swap exposure that delivers the return of the underlying index. Deutsche says gold offers a range of benefits as collateral. It is negatively correlated with financial distress, as gold prices historically rise in periods of equity market volatility and risk aversion. The gold is stored in secure vaults and offers value transparency as prices are published daily. Deutsche says gold is also easy to liquidate as a form of collateral, in case of counterparty default. ...