That’s the gist of a story up on the FT’s Alphaville site this morning:
Company filings of Deutsche Bank db x-tracker non-bond ETF products , for example, show that investors buying exposure to European equity ETF products would, in the event of failure, actually have had recourse, in many cases, to Japanese equities for the most part of 2009.
A filing from June 2009, for example, revealed the composition of the bank’s non-bond ETF equity collateral to be as follows:
Pink is Japan
This is quite a technical issue relating to how trackers are constructed, but it’s still a surprise. Read the FT article for the full picture.
(Source: FT Alphaville)
