MTSNext says Danske Bank has licensed the EuroMTS 5-7 and 15+ year maturity band indices for use as underlying references in a new 3 year maturity “Himalayan” structured product, issued by KommuneKredit, and listed this week on the Copenhagen Stock Exchange.
“Danske Bank is pleased to launch the first Himalayan structure utilising the EuroMTS 5-7 and 15+ year maturity band indices within an index basket,” says Torben Jensen, Chief Dealer of Danske Bank. “It was important for our customers that the redemption price of our structured bond reflected the general price movements of the eurozone government bonds- using the EuroMTS indices is an efficient and transparent way to link our product to these securities. Without the EuroMTS Index, this product structure would have been very difficult to achieve.”
Scott Stark, CEO of MTS Next added: “Eurozone government bond asset managers have long since recognised the benefits of the EuroMTS index as both an investment benchmark and performance measurement tool. The issue by Danske Bank of this innovative product is evidence that the representation, transparency, tradability and real time calculation of the EuroMTS indices are benefits now being discovered by a wider investment audience”.
The EuroMTS Index, formerly the CNO Etrix, was acquired by EuroMTS in January 2003 and has since been extended to include real-time pricing with two daily fixings. A major goal in developing the index has been to provide widespread and easy access to the index and its pricing, a policy that reflects the demands of a variety of bond investors.