Barclays Capital, the investment banking division of Barclays Bank PLC and publisher of leading fixed income benchmarks, today announced the launch of a new family of benchmark bond indices that use gross domestic product (GDP) to weight country blocs within an index. This new benchmark family continues to expand the number of alternative weight bond indices available in the Barclays Capital benchmark index platform and widens the choice for investors beyond existing flagship indices which weight index eligible securities by their market value. Barclays Capital also announced a new family of universal benchmark indices that combine developed market and emerging markets debt in single benchmarks using either market value or GDP weights.
The GDP weighted bond indices are the latest offering from Barclays Capital using an alternative weighting methodology and complement existing issuer capped, country capped, composite weight and float adjusted benchmark index families. Using published GDP data, this new family calculates target index weights for different index country blocs as a percentage of GDP rather than weighting each bond by its market value. The GDP weighting methodology is available for flagship benchmarks such as the Global Aggregate and Global Treasury Indices and other universal benchmarks that include both developed market and emerging markets debt. Bespoke benchmark solutions can also be adapted to use this new rules-based alternative weighting scheme.
“Barclays Capital offers a broad and evolving suite of index products from which investors are able to select or customize the most appropriate benchmark for their portfolio needs,” said Waqas Samad, Head of Index, Portfolio and Risk Solutions for Barclays Capital. “By continuing to launch fixed income indices that are in demand by global investors, like the new GDP weighted index family, Barclays Capital is in a unique position to offer index and portfolio risk solutions truly tailored to an index user’s specific market perspective.”
"This new index family underscores our commitment to providing clients with unique analytical resources through our market-leading research platform," said Larry Kantor, Head of Research for Barclays Capital. "We will continue to invest in our index offering to deliver to our clients the tools they need to be successful."
Barclays Capital also announced the expansion of its family of universal benchmark bond indices that combine broad investment-grade benchmarks with other emerging markets or high-yield indices. New indices include a Global Treasury Universal benchmark that adds local currency emerging market debt to the existing Global Treasury Index, and a Global Treasury Universal Plus Index that combines local currency and foreign currency government debt from developed and emerging market issuers into a single benchmark. These indices are available using market value weights as well as part of the new GDP weighted index family.
About Barclays Capital Index, Portfolio and Risk Solutions
The Barclays Capital Indices platform offers market leading benchmarks and alpha generating index products to meet the diverse needs of global investors including investment and market analysis of both alpha and beta sources, portfolio benchmarking and performance measurement, asset allocation, and the creation of index tracking funds and index based structured products. Barclays Capital bond market indices are the most widely accepted benchmarks in the asset management industry, used by over 90 percent of US institutional investors, a majority of large European investors and a growing share of Asia-Pacific managers.
About Barclays Capital
Barclays Capital is the investment banking division of Barclays Bank PLC. With a distinctive business model, Barclays Capital provides large corporate, government and institutional clients with a comprehensive set of solutions to their strategic advisory, financing and risk management needs. Barclays Capital has offices around the world, employs over 20,000 people and has the global reach, advisory services and distribution power to meet the needs of issuers and investors worldwide. For further information about Barclays Capital, please visit our website www.barclayscapital.com.
Barclays Capital – the investment banking division of Barclays Bank PLC. Registered in England 1026167. Registered office 1 Churchill Place, London, E14 5HP. Authorised and regulated by the Financial Services Authority and a member of the London Stock Exchange.