DBKGn.DB (traded on XETRA) and PSL introduce self-governing European CLO Total Return Indices, listed on the NYSE as DB.
Introducing the DB € CLO Total Return Index: A Transformative Benchmark for the European CLO Market
In a significant move, Deutsche Bank and PSL (Portfolio Solutions Limited) have collaborated to launch the DB € CLO Total Return Index (DB € CLO TRI). This innovative index aims to provide a comprehensive and transparent benchmark for the European Collateralized Loan Obligation (CLO) debt market.
Comprehensive Tracking of the European CLO Debt Market
The DB € CLO TRI captures the total return performance of euro-denominated CLO debt instruments. It offers a reliable benchmark for this asset class, providing investors with a valuable tool for understanding the market's dynamics.
Enhanced Transparency and Market Insight
By aggregating a broad and representative set of CLO tranche returns, the index offers transparent and consistent performance measurement. This is crucial given the complex and less liquid nature of CLO debt in Europe.
Facilitating Investment and Risk Management
The index allows asset managers, investors, and other market participants to track CLO debt performance efficiently. This enables better portfolio allocation, risk assessment, and benchmarking.
Partnership Between Expert Institutions
The collaboration leverages Deutsche Bank’s extensive financial market expertise and PSL’s specialized portfolio management and index development capabilities. This ensures robust data handling and index construction methodologies suited to the intricacies of the European CLO market.
Reflecting Yield and Spread Dynamics in the CLO Market
The index captures key drivers such as yield premiums relative to leveraged loans and credit spreads. This helps investors understand the risk-return profile of CLO debt compared to other credit instruments.
Operational Details
The DB € CLO indices are rebalanced monthly to reflect new issuances, redemptions, refinancings, and resets. The index offers a history back to the end of 2017. DBIQ, the in-house Index Administrator of Deutsche Bank, calculates over 5,000 indices across all asset classes.
Contact Information
For further information about the DB € CLO TRI, please contact Deutsche Bank AGMedia Relations at [email protected]. For queries related to the PSL CLO TRI Team, you can reach out to them at [email protected].
A Milestone for the European CLO Market
The launch of the DB € CLO TRI marks an important development milestone for the European CLO market. Fraser Malcolm, CEO at PSL, and Conor O'Toole, Global Head of CLO Research & Head of European Asset-Backed Research, have expressed their enthusiasm about this collaboration.
In summary, the DB € CLO Total Return Index aids in providing a transparent, comprehensive, and investable benchmark for the European CLO debt market, supporting market participants in performance tracking and decision-making.
Structured finance plays a crucial role in facilitating investment and risk management within the European CLO market by offering a reliable benchmark like the DB € CLO Total Return Index. The efficient tracking of CLO debt performance made possible by the index enables better portfolio allocation, risk assessment, and benchmarking for asset managers, investors, and other market participants.
In addition, the partnership between Deutsche Bank and PSL, two expert institutions, ensures that the DB € CLO Total Return Index takes into account the complex and unique characteristics of the European CLO market, providing comprehensive tracking, enhanced transparency, and offering valuable insights for those interested in investing in this business sector. The use of technology in index development also contributes to capturing the key dynamics of the market, such as yield and spread relationships.
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