The leading knowledge platform for the financial technology industry
The leading knowledge platform for the financial technology industry

A-Team Insight Blogs

UBS Launches UBS-MISTRAL Family of Innovative Active Interest Rate Indices

This week, UBS launches the Multi Indicator Short Term Rate Algorithm (UBS-MISTRAL) indices. Going beyond traditional trend following, UBS-MISTRAL identifies the underlying fundamental drivers of trends in interest rates, using a diversified set of leading indicators to take positions in interest rate futures. The indices are transparent to participating clients and will be published on a daily basis.

Over the past 50 years most of the developed world has seen one big “megacycle” in interest rates and several pronounced mini-cycles. UBS-MISTRAL seeks to predict these interest rate trends and then takes positions to monetise them. In more stable interest rate environments, UBS-MISTRAL may position to benefit from interest rate carry until the next hiking or cutting cycle develops. This approach has allowed UBS-MISTRAL to generate returns in periods of rising, stable and falling interest rates, exhibiting low correlation with other market variables.

Clients will be able to access the UBS-MISTRAL indices in a wide range of formats and wrappers including notes, options, swaps, delta-1 products and funds.

UBS-MISTRAL is the latest addition to UBS’s platform of Strategy Indices.

Related content

WEBINAR

Recorded Webinar: Adverse media screening – how to cut exposure to criminal activity, from money laundering to human trafficking

Screening for adverse media coverage of counterparties presents an incredible opportunity for financial institutions to limit risk exposures and identify bad actors early. It is required by regulations such as the EU’s sixth Anti-Money Laundering Directive (AML 6), and is one of the most effective ways to steer clear of potential connections with sanctioned activity...

BLOG

GLEIF Adds Two Validation Agents in Drive to Increase Global LEI Adoption

The Global LEI Foundation (GLEIF) has added two validation agents to its LEI issuance scheme in recent weeks, easing adoption of the identifier and extending its reach in Africa. The foundation has also published its 2020 annual report, noting a rise in LEI numbers and a 2021 focus on the validation agent role introduced in...

EVENT

Data Management Summit London

DMS London brings together the European data management community to explore the latest challenges, opportunities and data innovations facing sell side and buy side financial institutions.

GUIDE

Entity Data Management Handbook – Seventh Edition

Sourcing entity data and ensuring efficient and effective entity data management is a challenge for many financial institutions as volumes of data rise, more regulations require entity data in reporting, and the fight again financial crime is escalated by bad actors using increasingly sophisticated techniques to attack processes and systems. That said, based on best...