Markit has launched the Markit iBoxx Short EUR Sovereign Eurozone Total Return Index.
The index, which reflects a short position in the Markit iBoxx EUR Sovereign Eurozone index, will serve as a benchmark for asset managers and institutional investors holding short positions in Eurozone government debt. It takes into account revenues from short sales of bonds in the index, as well as a current repo rate, and therefore goes beyond a simple inverse position.
“We have launched a new short bond index in response to customer demand. The Markit iBoxx indices are increasingly the benchmark of choice for investment products throughout Europe, and we believe this new index further enhances the index universe,” says David Mark, director, Markit Indices.
It will also be used as the index underlying a db x-trackers ETF which will be launched by Deutsche Bank in May.
“This new ETF, the first short bond ETF worldwide, confirms Deutsche Bank’s ability to innovate. We are reacting quickly to developing trends by bringing new products to market as quickly and efficiently as possible,” says Marco Montanari, head of Fixed Income ETF Structuring, Deutsche Bank.