Bringing you live news and features since 2006 

Lyxor launches three double short government bond ETFs

RELATED TOPICS​

Lyxor Asset Management is expanding its range of fixed income exchange-traded funds with the launch of double short ETFs on government bonds.

The new funds are: Lyxor UCITS ETF Daily Double Short 10Y US Treasury – C – USD; Lyxor UCITS ETF Daily Double Short 10Y Japan Govt Bonds – C-USD; and Lyxor UCITS ETF Daily Double Short 10Y UK GILTS – C-GBP.
 
Interest rates have reached levels close to 30-year lows, resulting in government bonds becoming relatively more exposed to downside risk. In the context of high levels of debt, slow growth and different patterns of fiscal reforms, there is a growing need for a suite of hedging tools to protect investors against a possible rise in long term government bond rates in all major currencies.
 
The Double Short ETFs on US Treasuries, gilts and Japan government bonds have been developed to respond to this need and complement the Lyxor ETF Daily Double Short Bond (EUR600m of assets) and Lyxor ETF Double Short BTP (EUR160m of assets). Thanks to their double short exposure, these ETFs allow for limited capital commitment and fees for a given nominal amount to be hedged.
 
François Millet, product line manager of ETF and indexing at Lyxor, says: “At a time where we can expect higher volatility in bond prices, we think it is opportune to propose new tools to investors to protect their portfolios against the risk of rising interest rates. Such tools can help investors avoiding the operational constraints that come from investing in derivatives.”
 
With the launch of these new offerings, Lyxor becomes the first ETF provider to offer a complete range of hedging instruments on major government bond issuances.

Latest News

ETF data consultant ETFGI reports that assets invested in the global ETF industry reached a new record of USD12.71 trillion..
Calastone has published an ETF white paper which examines several of the processes that take place across the lifecycle of..
Adapting product lines to fit into changing methodologies and meet shifting demand is essential to remaining relevant in the industry..
Investors urgently need greater access to diversified investment strategies aligned with the Paris Agreement on climate change if the world..

Related Articles

Taylor Krystkowiak, Themes ETFs
Themes ETFs opened its doors in December 2023, with an introductory suite of 11 ETFs – seven thematic and four...
Konrad Sippel, Solactive
At the end of March, financial index specialist, Solactive, published its 2024 annual report on future trends.  ...
Lorraine Sereyjol-Garros, BNP Paribas
Following changes to the French Monetary and Financial Code and of the French market authority AMF’s General Regulation, it is...
Ed Rosenberg, Texas Capital
Texas Capital Bank first opened its doors back in December 1998 and nowadays offers wealth-management services, as well as commercial,...
Subscribe to the ETF Express newsletter

Subscribe for access to our weekly newsletter, newsletter archive, updates on the site and exclusive email content.

Marketing by