Deutsche Bank offers commodity-linked ETN exposure

Deutsche Bank and Invesco Powershares have launched eight exchange traded notes (ETNs) on the Arca platform of the New York Stock Exchange. Four will be linked to the performance of industrial metals, while the remaining notes will track crude oil price changes, both via the bank’s proprietary commodity index. The notes will be available in US$25 denominations.

For metals, the notes each apply a different strategy to Deutsche’s Liquid Commodity Index – Optimum Yield Industrial Metals, which tracks the price changes in a basket of aluminium, copper and zinc futures. The four ETNs will offer either leveraged or regular long/short exposure. The Base Metals Long ETN offers exposure to the monthly performance of the index plus a monthly T-bill index return; the short version of the same ETN offers the same formula while using the inverse performance of the