Robeco and Citi Complete Centrally-Cleared Inflation Swap

Citi has supported asset manager Robeco in completing the first centrally cleared inflation swap ever processed on behalf of a continental European buy-side client. The swap was cleared through LCH.Clearnet's SwapClear which, in April of this year, was the first CCP to launch clearing for inflation-linked swaps. The option to centrally clear inflation-linked swaps is an important milestone in the further growth of the cleared derivatives market as asset managers and pension funds in particular continuously look for efficient ways to hedge their portfolios and / or liabilities against rising inflation. By clearing these instruments, investors can avoid market fragmentation and gain significant netting advantages. Commenting on the transaction, Peter van der Spek, Director, Customized Overlay Management, Robeco said: "We are happy that in partnership with Citi we have now completed our first centrally cleared inflation swaps and iTraxx CDS. Robeco is a long-term advocate of central clearing of standardized OTC derivatives. In Q4 2011 we were one of the first European asset managers to move to central clearing for all our investment funds' interest rate swaps and we have been keen to expand to other instruments once available for clearing." "We are pleased to continue to bring more innovative solutions to market". Silas Findley, EMEA head of Futures, Clearing and Collateral. "We remain highly focused on meeting the increased demand of our clients in the futures, clearing and collateral management space and our partnership with Robeco to flawlessly execute this transaction highlights our commitment to providing best-in-class derivatives clearing services."