Deutsche Bank launches new Proprietary Fixed Income Index
Deutsche Bank has launched a new fixed income index, dbSMART, offering investors the opportunity for absolute returns irrespective of the actual level of interest rates or the slope of the yield curve, making it a compelling alternative to traditional fixed income investments.
The dbSMART Index seeks to capture the direction of term premium, based on the observed behaviour of the yield curve in rate cycles. An intelligent filtering process seeks to time and implement dynamically steepening and flattening positions to capture and maximise alpha for investors.
The dbSMART Index is entirely quantitative and driven by research with no subjectivity involved in the decision making process. The Index is duration neutral and therefore does not exhibit a strong correlation to the level of interest rates Furthermore the dynamic nature of the long and short positions implemented within the index also leads to low correlation to slope levels.
dbSMART is the latest in the line of Deutsche Bank’s highly successful institutional fixed income research models which seek to extract alpha across the fixed income world and further demonstrates Deutsche Bank’s extensive technical and structuring expertise in alpha generating products.
Institutional Investors can access the index through a variety of products including OTC derivatives, funds, notes, certificates or a number of alternative wrappers and is available in a number of formats from principal protected to highly leveraged.
Rich Herman, Head of Global Rates in Europe comments, “Investors are in a never-ending search for alpha generating products that are dynamically managed and transparently packaged. The dbSMART Index allows investors to benefit from our extensive quantitative capabilities and offers a compelling alternative to other bond or rate indices.”
For further information, please call:
Michelle Gathercole (44 20) 7545 4249
Press and media relations
About Deutsche Bank
Deutsche Bank is a leading global investment bank with a strong and profitable private clients franchise. A leader in Germany and Europe, the bank is continuously growing in North America, Asia and key emerging markets. With Euro 1,128 billion in assets and 68,849 employees in 73 countries, Deutsche Bank offers unparalleled financial services throughout the world. The bank competes to be the leading global provider of financial solutions for demanding clients creating exceptional value for its shareholders and people.