STOXX Ltd, the operator of Deutsche Boerse Group’s index business and a provider of tradable index concepts, has launched the EURO STOXX 50 Corporate Bond Sector, Rating and Maturity Bucket Sub-Indices.
They expand the EURO STOXX 50 Corporate Bond Index, which was launched in April and is the fixed income equivalent of the EURO STOXX 50, including the bonds of the blue-chip companies in the Eurozone.
The new sub-indices represent certain maturity buckets, industries and rating classes. The maturity buckets include 1-3 years, 3-5 years, 5-7 years, and more than 7 years. There are also a EURO STOXX 50 Corporate Bond Financials, EURO STOXX 50 Corporate Bond Ex-Financials incl. maturity buckets and a higher quality AAA-A version.
“Our fixed income offering is growing rapidly. The exclusive bond version of our flagship index, the EURO STOXX 50 Corporate Bond Index, has now been expanded with a set of sub-indices tracking different maturity buckets, industries and credit ratings. The different versions and combinations allow the investors to more efficiently and accurately capture their fine-tuned views in European credit markets, helping match desired strategies. All sub-indices are based on our blue-chip equity index EURO STOXX 50, which is a household name for investors around the world,” says Matteo Andreetto (pictured), chief executive officer, STOXX Limited.
The EURO STOXX 50 Corporate Bond Index and its sub-indices are comprised solely of corporate bonds issued by companies that are constituents of the EURO STOXX 50 index at the time of the rebalancing.
All eligible corporate bonds must have a remaining time to maturity of at least 15 months measured from the respective re-balancing date to the maturity date and must have a minimum nominal amount outstanding of EUR750 million. Only euro-denominated fixed and zero coupon bonds are included. A minimum consolidated bond rating of Investment Grade (BBB and higher) is required. The indices are market cap-weighted.
STOXX uses the fixed income Continuous Evaluated Pricing service by ICE Data Services (formerly Interactive Data Corporation) which provides real-time bond prices.
The EURO STOXX 50 Corporate Bond Index and its sub-indices are calculated real-time in price and total return versions. Historical data is available from 31 December 2010. The EURO STOXX 50 Corporate Bond Index is reviewed quarterly in March, June, September and December.