Crude Oil Double Long (DXO). Analysts expected the liquidation would flood the curve with up to 11,750 futures contracts. Yet, as Jakob points out in a recent note, the latest data fails to account for any such liquidation at all…..
…..So in effect, if you thought you were buying oil as an inflation hedge with the DXO, you would be wrong. You were actually buying returns based on a 100 per cent guarantee by just one counterparty – Deutsche Bank. The fund – or trust – that issued the notes never owned any oil on your behalf.
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