Consider NZGB calls as a way to get long
Data Flash (New Zealand)
Consider NZGB calls as a way to get long
* We believe that too much is priced into the forwards.
* The appreciation of the NZD is approaching levels where it could begin to have a material impact on the profile for
the cash rate going forward.
* We believe that the front end of the New Zealand curve can rally from current levels.
* While this is our central view, a sharp change of interest rate sentiment in the US is perhaps the major risk.
Therefore some investors may prefer to implement the trade via options.
***The attached research constitutes Deutsche Bank's proprietary information*** This, along with an extensive range of
other publications, is available on our web site http://research.gm.db.com