The Bloomberg global bond indices offer the first truly independent, truly global comprehensive benchmarks of the global fixed income universe, backed by Bloomberg’s industry leading bond reference data, pricing and technology. The series also provides a rich dataset to construct the next generation of index-linked products that target specific market niches or enhanced index strategies.
|+||Global Developed Sovereign Bond||BGSV|
|+||Global Investment Grade Corporate Bond||BCOR|
|+||Global High Yield Corporate Bond||BHYC|
|+||USD Emerging Market Composite Bond||BEM|
|+||US Treasury Bond||BUSY|
|+||Canada Sovereign Bond||BCAN|
|+||Eurozone Sovereign Bond||BEUR|
|+||U.K. Sovereign Bond||BRIT|
|+||Pacific Rim Developed Sovereign Bond||BPAC|
|+||US Corporate Bond||BUSC|
|+||USD High Yield Corporate Bond||BUHY|
|+||EUR Investment Grade European Corporate Bond||BERC|
|+||EUR High Yield Corporate Bond||BEUH|
|+||GBP Investment Grade European Corporate Bond||BGBP|
|Emerging Market Indices|
|+||USD Emerging Market Sovereign Bond||BEMS|
|+||USD Emerging Market Corporate Bond||BEMC|
|+||Emerging Market Local Sovereign||BLCSV|
|+||US Treasury Floating Rate Bond||BUSYFL|
The Bloomberg Global Bond index family covers Global Corporates (both Investment Grade and High Yield), Global Sovereigns and Securitized Bonds (U.S. MBS and European Covered). We intend to extend the family to emerging market local currency, bank loans and inflation linkers. Not only are these indices integrated with all of Bloomberg’s analytics, but also offer opportunities to customize using our robust index calculation engine and bond optimizer.
Bloomberg FINRA Active U.S. Corporate Bond Indices
Bloomberg and Financial Industry Regulatory Authority (FINRA) collaborate to produce indices of the most frequently traded fixed coupon U.S. corporate bonds as represented by TRACE. TRACE is FINRA’s transaction reporting facility that disseminates all over-the-counter secondary market transactions in these public bonds. As the only indices that represent the most frequently traded bonds, these indices are widely used in the media and academia.
The Bloomberg U.S. Municipal AMT Free Weekly VRDO Index is the leading measure of the municipal variable rate demand obligation bond market. Variable Rate Demand Obligations (VRDOs) are long-term, tax-exempt bonds whose interest rates generally reset on a daily, weekly or monthly basis. The index underlies the industry’s largest VRDO ETF.
African Sovereign Bond Index
The AFMI Bloomberg African Bond Index provides a benchmark for local currency Africa sovereign bonds.
Independent and transparent pricing is a key difference of Bloomberg’s index family versus other index families that rely on single dealer pricing or composite pricing across a small number of dealers. Bloomberg Fixed Income Indices use Bloomberg Valuation Service (BVAL) pricing. BVAL starts with the highest quality data integrated across a wide cross section of market contributors—more than 4,000 sources. The data, which is completely transparent and defensible, is then scrubbed, cleansed, verified with every input and output and tested for quality and consistency.
An important and complementary component of BVAL is the BVAL Score. This innovative metric is designed to provide a consistent and quantifiable means to assess the quantity and quality of market observations supporting each price. BVAL ‘scores’ may be used as a screen in index selection, potentially enhancing the tradability of an index, especially for enhanced or dynamic indices.
Bloomberg’s indices use the Bloomberg Industry Classification System for Fixed Income (BICS FI). BICS FI is a hierarchical system that classifies the marketplace for fixed income security issuers. The system uses two levels of detail (Sector and Industry Group) to classify issuers with similar businesses and characteristics.
Bloomberg classifies companies by tracking their primary business as measured first by the source of revenue and second by operating income, assets and market perception.
Consistent history and deep coverage across Bloomberg’s bond universe enable BICS FI to provide a rich framework for analyzing sector risk exposures of indices. It also provides a tool set to build customized indices that constrain the weight of single issuers (for example, per UCITS in Europe or IRS limits in U.S.) or sectors in enhanced or dynamic indices.