Following its recent receipt of a licence from iTraxx, Deutsche Bank plans to launch exchange-funds based on three iTraxx indices as part of its db x-trackers ETF platform, iTraxx Europe, iTraxx Europe HiVol and iTraxx Europe Crossover.
The launch of these products will allow European clients to trade ETFs on CDS indices for the first time. Deutsche Bank expects the iTraxx ETFs to be popular with corporates, insurance companies and asset managers.
Rich Herman, head of global rates structuring, said: "The ETF market is integral to Deutsche Bank's strategy, and we believe the iTraxx brand is the perfect partner to spearhead the growth of our fixed-income ETF business
Deutsche launched the db x-trackers platform, which benefits from the bank's index trading capabilities, earlier this year and has already issued eight equity ETFs with listings in Germany and Italy.
Head of exchange-traded funds Thorsten Michalik adds: "The new ETFs on iTraxx indices, combined with the listing of more than 35 other ETFs on equity, fixed-income and commodities indices on the db x-trackers platform in the coming two to three months, will make Deutsche Bank one of the largest providers of ETFs in Europe."
First introduced in the US in 1993 and in Europe in 2000, there were 769 ETFs listed globally with over EUR 445 billion assets under management at the end of last year, with equity-based ETFs showing an increase of 18 per cent. In Europe ETF assets grew 19 per cent to EUR 67.9 billion. By 2011 it is forecast that assets in ETFs globally will exceed EUR1.5trn.