Deutsche X-trackers Launches High Yield Bond ETF
Deutsche Bank – Deutsche Asset Management (Deutsche AM) announced the launch of Deutsche X-trackers USD High Yield Corporate Bond exchange-traded fund (ETF) (NYSE Arca: HYLB). The most cost efficient high-yield ETF in the US market, HYLB will provide investors access to benchmark exposure to high yield bonds.
“For investors seeking pure high-yield beta exposure as part of their diversification strategy in their overall asset allocation, they can now do so in a fast and cost-effective way through the Deutsche X-trackers USD High Yield Corporate Bond ETF,” said Fiona Bassett, Head of Passive Asset Management, Americas. “In the current low interest rate environment, high-yield bonds provide investors with a potential source of income. In addition, as the market is anticipating an interest-rate hike by the US Federal Reserve Board, the high-yield market tends to be less impacted by rate moves, shielding investors from potential volatility.”
The US platform also offers Deutsche X-trackers High Yield Corporate Bond-Interest Rate Hedged ETF (Bats: HYIH), which provides exposure to high-yield bonds while potentially reducing the interest rate risk in an investment portfolio. HYIH seeks to track the performance, before fees and expenses, of the Solactive High Yield Corporate Bond – Interest Rate Hedged Index, which aims to mitigate exposure of interest rate sensitivity across the yield curve in a rising rate environment.
Traders will be able to execute with multiple liquidity sources at the same time.
Under MiFID II, continuation of trading after a credit event may not be possible.
Firm looks to boost data mining and connectivity to open up new pools of bond liquidity.
The firm plans to test the issuance and administration of bonds backed by crypto assets.
Custody data could be used to transform bond liquidity.