The ETNs will provide investors with exposure to U.S. inflation or deflation expectations. They will give investors the opportunity to take long or short exposure to changes in the market’s expectations of future inflation implied by the difference in yields between a notional long or short position in U.S. Treasury Inflation Protected Securities (TIPS), and offset the notional position in U.S. Treasury Bonds with approximately equivalent terms to maturity.
The ETNs will be listed for trading on the NYSE Arca, under the following symbols:
• PowerShares DB US Inflation ETN (INFL), and
• PowerShares DB US Deflation ETN (DEFL)
The ETNs are senior unsecured obligations issued by Deutsche Bank AG, London Branch. The price of each ETN is based on a gain or loss of $0.10 per ETN for each 1 point increase or decrease in the level of the DBIQ Duration-Adjusted Inflation Index or the DBIQ Duration-Adjusted Deflation Index, as applicable, combined with the monthly returns of the DB 3-Month T-Bill Index, less an investor fee.