UK- Global index provider FTSE Group is launching a new global bond index series, following its recent acquisition of Reuters’ BONDTOP index family.
FTSE plans to use Reuters’ indices as of Monday 21st October, which will form the basis of the new global bond series. Newly created tradable indices will be added over the coming months allowing the series to support exchange traded funds (ETFs), index-linked funds and derivative products.
The new indices will include country and regional government bond indices, as well as corporate bond indices becoming the first independent bond indices worldwide.
Says Mark Makepeace, chief executive at the FTSE Group: “We have been building up our global equity indices over the years, and our clients, which are some of the biggest pension funds and investors have been asking us to produce global bond indices. We currently only produce UK Gilt indices.
“At present there are bond indices that are produced by banks, but investors want a product which is independent, transparent and has multiple price sources. It is difficult to obtain good quality prices from a wide range of sources, but working with Reuters’ we will be able to do so as Reuters takes its prices from over 200 sources.”
Reuters will distribute the FTSE global bond index series.