Deutsche Bank preps notes linked to Liquid Commodity index; SunTrust to sell fixed-to-floaters

By Sheri Kasprzak

New York, May 9 - Deutsche Bank AG, London Branch announced plans to price zero-coupon market contribution securities, according to a Securities and Exchange Commission filing.

The securities are linked to the Deutsche Bank Liquid Commodity Index - Mean Reversion Total Return.

The three-year notes pay upon redemption or at maturity par plus the index return, which could be positive or negative, minus an adjustment factor of 2% per year, said the filing.

The index includes futures contracts on heating oil, crude oil, aluminum, gold, wheat and corn. It systematically adjusts their weightings to assign higher weights to those commodities trading in a lower price range and lower weights to those commodities trading in a higher price range, in each case based on the ratio of their one-year to five-year moving average prices.

Pricing is expected May 17.

Provides access to futures

One market source, when asked about the offering, said the notes provide investors with easy access to the futures market.

"It's not a market sector that's readily available to a wide range of investors," the source said.

"It's a diverse index, so it provides a variety of different commodities."

The index was created in January 2006.

SunTrust issue ahead

In other upcoming offerings, SunTrust Banks, Inc. announced plans to price fixed-to-floating-rate notes on May 23.

The notes are due May 29, 2019, said an FWP filing with the SEC.

The notes will bear interest at 2% the first year. After that, interest will be Libor plus 80 bps, subject to a minimum interest rate of 0.8% and a maximum interest rate of 6%. Interest is payable quarterly.

The payout at maturity is par.

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