Merrill launches fixed interest index
Merrill Lynch has launched a broad index of Australian debt securities that is one of the final building blocks in its soon-to-be-launched global index.
Merrill Lynch has launched a broad index of Australian debt securities that is one of the final building blocks in its soon-to-be-launched global index.
The Australian Broad Market Index tracks investment grade Australian dollar denominated debt of sovereign, quasi-government and corporate issuers domiciled in investment grade countries.
Including 122 bonds with total capitalisation of more than $132 billion, the index, together with comparable indices for the United States, Canada, Pan-Europe and Japan, will be included in a Merrill Lynch Global Broad Market Index, to be launched next month.
Merrill Lynch & Co managing director Phil Galdi says "explosive growth" in the attention in-vestors pay to debt market indices prompted the creation of the new product.
He says increasingly difficult to interpret and changing market environments have increased in-dice use.
"As new markets evolve, there's a new need for new performance standards," Galdi says.
Increasing use of corporate debt as a primary source of return in fixed income portfolios, driven by declining yields and supply in the government debt markets, has also pushed up the use of indices.
Recommended for you
ASIC has permanently banned a former Perth adviser after he made “materially misleading” statements to induce investors.
The Financial Services and Credit Panel has made a written order to a relevant provider after it gave advice regarding non-concessional contributions.
With wealth management M&A appetite only growing stronger, Business Health has outlined the major considerations for buyers and sellers to prevent unintended misalignment between the parties.
Industry body SIAA has said the falling number of financial advisers in Australia is a key issue impacting the attractiveness and investor participation of both public and private markets.
