Citigroup's hybrid derivatives desk is pitching a note referencing an active portfolio of equities, commodities or bonds featuring 100% principal protection, as part of its multi-asset products business. Samir Mathur, managing director and head of the hybrids desk in New York, said the dynamic inflation allocation note, known as DIANe, is allocated between equity, commodity and bond indices depending on the level of U.S. consumer inflation. It is best to be in equity when inflation is low, commodities when inflation is high and bonds when it is somewhere in the middle, he argued. The firm first rolled out this product in Asia at the start of the year (DW, 2/4).
Citi Markets Inflation Allocation Note
