Interest rate derivatives - Modern great: Deutsche Bank

In the first quarter of this year, an Asian sovereign was looking to execute a constant maturity swap (CMS)-linked trade with a notional of around $1 billion. The trade, which in essence allowed the sovereign to bet on non-inversion of the US swaps curve, was roughly equivalent to the total size traded in an average month. Referring to Deutsche Bank, a senior swaps salesman at another firm says of the trade: "They won it because they are very aggressive on price; they often stick out from the