db x-trackers launch Synthetic EUR Liquid Corporate 12.5 UCITS ETF

The db EUR Liquid Corporate 12.5 UCITS ETF is an open ended UCITS compliant ETF which aims to track the db EUR Liquid Corporate 12.5 Index. 

The objective of the Index is to offer a liquid and diversified alternative to a long dated corporate bond portfolio, such as the universe of the iBoxx EUR Corporate A/AA 10y+ Index. To achieve this objective, the Index is composed of two components: 

— A portfolio of highly rated sovereign bonds, via the iBoxx EUR Sovereign Germany Index and iBoxx EUR Sovereign France Index, with bonds of more than 10 years maturity chosen to match the desired interest rate sensitivity of the ETF 

— Corporate credit exposure based on the diversified iTraxx Europe 5 year and 10 year Investment Grade CDS Indices (the “iTraxx Index”). The exposure to the iTraxx index is levered to achieve the desired credit spread sensitivity of the ETF. The maximum notional exposure to the iTraxx Index is capped at 250% of the Index level.

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