iBoxx expands sterling range
Index provider iBoxx has launched new indices to expand its family of sterling bond indices. The new indices cover sub-sovereigns, collateralised and corporate bonds, and join the existing real-time Gilts indices.
With this new series of indices, iBoxx says its indices now span the market of investment-grade bonds denominated in euro and sterling. In the medium term, iBoxx said it plans to offer global bond indices.
The sterling indices are intended for use as benchmarks by asset managers and investors. iBoxx says it supports bond trading in front offices with its real time bond prices and portfolio valuation in back offices with its end-of-day bond prices.
But it also says the rules-based construction of the indices and the transparent pricing of the bonds by leading market participants had laid the foundation for the development of financial derivatives on non-government bonds.
All iBoxx indices are calculated as price and total return indices, and are rebalanced monthly.