Deutsche Bank to review valuations of inflation swaps: Bloomberg

Published : October 26, 2016

(Reuters) - Deutsche Bank AG <DBKGn.DE> is reviewing whether it misstated the value of derivatives in its interest-rate trading business, and is sharing its findings with the U.S. authorities, Bloomberg reported, citing people familiar with the matter.


The lender is looking at valuations on a type of derivative known as zero-coupon inflation swaps, Bloomberg reported on Wednesday. (


After finding valuations that diverged from internal models, Deutsche Bank began questioning traders, according to the report.


Zero-coupon inflation swaps are derivatives whose pay-off depends on the rate of inflation in a given period.


A Deutsche Bank spokesperson declined to comment.

(Reporting by Sruthi Shankar in Bengaluru; Editing by Shounak Dasgupta)

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