The 10-year inflation-indexed German Bund is a bond with a cash flow which is linked to the performance of an inflation index. The original nominal value of the inflation-linked bond is adjusted on a daily basis to reflect inflationary developments, thus protecting the value of the bond from changes in inflation.
The European repo market is a growth market. According to industry surveys performed by the International Capital Market Association (ICMA), the European repo market grew by an average of 25% annually between 2002 and 2005. Eurex Repo has substantially outperformed the market: the average outstanding volume of Eurex Repo’s two repo markets increased by 40% year-on-year to total 73.9 billion euros. The euro repo market is proving to be a particularly high-growth area. For the first time at the end of 2005, its outstanding trading volume outstripped that of the Swiss franc market, which was launched two years previously, reaching almost 50 billion euros at its peak.