Deutsche Bank is one of the world's most active traders of fixed income securities and OTC derivatives. We trade standardised government bonds to tailor made five factor correlation products. We are recognised by our customers and the inter bank community as an premier provider of liquidity in all the products and markets we choose to operate in. We provide our clients with a comprehensive range of products and solutions that are structured to meet their specific fixed income financing, risk management and investment requirements.

 

Government Bonds and Agency Securities

Deutsche Bank is one of the premier traders of government debt securities. We have a global network of primary dealerships and are one of only 2 banks in Europe who are a primary dealer for all European Bond Markets. We are the largest dealer in Germany, Austria and Italian government bonds and hold prominent positions in all major European bond markets, including the UK. The Bank is also a leading player in the Japanese Bond Market and the US Treasury Market.

Deutsche Bank is also a dominant player in agency debt worldwide. Our unique Cross Rates business allows clients to trade combinations of US Treasuries, agency debt, commercial mortgages and interest rate swaps on a single bid / offer price. Deutsche Bank is also a dominant market maker in German Pfandbrief market and in the growing market for Covered Bonds across Europe.

 

OTC Derivatives

Deutsche Bank is a leading provider of interest rate and inflation risk management solutions to banks, corporations, money managers and public bodies globally. The Bank's OTC Derivatives group is a major market maker in developed and developing derivative markets. Deutsche Bank makes it a priority to stay at the forefront of product development, market trends and regulatory change so we can react quickly and efficiently to the changing requirements of the market and its participants.

We continue to lead the way in product development and client delivery across retail, corporate, real money and leveraged sectors. Our leadership in the derivative market has been reflected in numerous awards. In Dec 2005 we were voted No.1 Interest Rate Derivative House by IFR and in 2006 Deutsche Bank dominated the end user surveys for interest rate derivatives holding numerous No.1 positions across the institutional investor, corporate and inter dealer end user surveys.

In summary Global Rate's unique platform that integrates trading, research structuring and distribution to deliver innovation, have allowed Deutsche Bank to maintain its leading position in the Fixed Income and OTC derivative markets.

 

Global Fund Derivatives

Deutsche Bank's Global Fund Derivatives team (GFD) provides the full range of hedge fund products and services: investment products, managed account platforms, secondary market trading, structured finance, risk management, fund distribution, options, and on-line reporting systems. It is the only firm to offer all these services. It was voted the world's best provider of hedge fund products by both Structured Funds magazine and Risk Magazine in 2008.

Investment Products: GFD offers investment products linked to more than 600 different hedge funds and over 800 leading global fund of Hedge funds, the largest product range in the market. Investors can select the manager(s) they wish to gain an exposure to, and GFD structures the appropriate product. These products are available in a wide range of formats including UCITSIII funds, certificates, notes, deposits and exchange traded funds (ETFs).

Managed Account Platforms: These platforms are used to issue investment products linked to groups of hedge funds and funds of hedge funds. Unlike direct hedge fund investments, the funds are selected by Deutsche to offer the best blend of risk and return, and are overseen by Deutsche Bank using highly sophisticated risk management techniques.

Hedge Fund Indices – GFD operates over 30 Synthetic Indices on hedge funds, funds of funds and hedge fund replication. These indices are used to create investment, risk management, benchmarking and financing solutions.

Secondary Market Trading: GFD makes markets in a wide range of hedge fund linked investment products. During 2008, it executed over $5 billion of trades, and regularly offered the tightest bid-offer spreads on many securities. Investors in our products can trade them on-line through X-markets with published live daily bid-offer prices (14 hours/ day)

Structured Finance: GFD is one the biggest provider of structured financing to hedge funds, fund of hedge funds, family offices and hedge fund investors where the loans are collateralised by their hedge fund portfolios. In 2009, GFD completed transactions for 6 of the top 10 FOHFs in the world, large professional partnerships in US, family offices and ultra HNW individuals in US and Middle East.

Risk Management: GFD helps investors to hedge their hedge fund positions and to restructure them where necessary.

Fund Distribution: GFD works with hedge funds to raise capital few new funds and to raise additional capital for existing funds, drawing on Deutsche Bank's unique global distribution network.

Options – GFD was the first firm to offer short dated (1-2yr) Call Options on Fund of Hedge Funds and single hedge funds (dbX-Liquid Select ), responding to investor demand for short-dated money market-type instruments.

On-Line Reporting Systems - One of the key investor concerns about hedge fund linked products is transparency. With many products it is very difficult to obtain up to date performance data, and almost impossible to monitor risk exposures. Our clients don't have that problem. Our dbX-Insight Reporting and db Risk Office tools allow clients to track returns in real time, and to monitor correlation and overlap analysis between FoHFs and single Funds.