Claymore Investments, Inc. has launched Claymore Inverse 10 Yr Government Bond ETF (CIB:TSX), the exchange traded fund provider said Tuesday.

The new ETF been designed to replicate the inverse (opposite) of the daily total return before fees, expenses, and transaction costs of the 10 Year Government of Canada Bond on a non-leveraged basis (1:1 ratio of the assets to notional exposure), Claymore explains.

The 10 Year Government of Canada Bond means any bond(s) issued by the Government of Canada (exclusive of any Crown Corporations, Provincial bonds or Municipal bonds) consisting of semi-annual pay fixed rate bonds denominated in Canadian dollars originally issued at 10 year auctions, with an effective term to maturity of 8 – 10½ years, a credit rating of at least BBB and minimum issue size of $3.5 billion.

“As we eventually move into a rising rate environment in Canada, investors will need tools to help manage their fixed income exposure for both the near and long term.” says Som Seif, president & CEO of Claymore.

“The Claymore Inverse 10 Yr Government Bond ETF is a tool for investors who are looking to hedge against potential effects of rising interest rates, without necessarily having to sell their current bond investments. This launch is part of our commitment to provide intelligent, low cost, and efficient investment solutions for investors.”

IE