LONDON, Feb 21 (IFR) - Deutsche Boerse's index business
Stoxx has set up a new series of indices to track the bond
values of Europe's biggest companies, after launching its
blue-chip corporate bond index last year.
Stoxx is looking to build on its fixed-income index offering
after launching, in April 2016, the Euro Stoxx 50 Corporate Bond
Index - a fixed-income version of its well-known Euro Stoxx 50
That was Stoxx's first bond index, and was designed to act
as an underlying benchmark for index-tracking exchange-traded
funds (ETFs), whose assets under management have ballooned in
recent years as investors have sought easy access to a central
bank-fueled bull market in bonds.
In May the firm launched a series of multi-asset indices,
ranging from 'high stability' to 'high growth', based on
different weightings of equities and corporate bonds from the
two flagship indices - again aimed at providing more focused
benchmarks for ETFs and other funds to track.
Its new corporate bond sub-indices represent several
maturity buckets, industry sectors and rating classes.
The different versions allow investors to "more efficiently
and accurately capture their fine-tuned views in European credit
markets", helping them match desired strategies, Stoxx chief
executive Matteo Andreetto said in a statement on Tuesday.
The maturity buckets are: one to three years, three to five
years, five to seven years, and over seven years.
There will also be a Corporate Bond Financials index, a
Corporate Bond Ex-Financials with more maturity buckets and a
"higher quality AAA-A" version, the firm said.
The Euro Stoxx 50 Corporate Bond Index and its sub-indices
are comprised solely of corporate bonds issued by companies that
are in the Euro Stoxx 50 index at the time of the rebalancing,
The indices are weighted by market capitalisation and to be
eligible bonds must have a remaining maturity of at least 15
months and have at least €750m outstanding. No floating-rate or
sub-investment grade bonds will be included.
Stoxx's real-time bond prices are provided by ICE Data
(Reporting by Tom Porter)