Reuters has launched Corptop, a corporate bond index, to add to its existing range of fixed interest...
Reuters has launched Corptop, a corporate bond index, to add to its existing range of fixed interest benchmarks.
The index helps risk managers to measure their portfolios against a benchmark for market performance and for risk purposes.
Corptop includes 67 corporate bonds which range from the top-rated AAA category down to BBB, the cut-off for bonds in the investment grade category. There is also a separate category covering maturities of one to three years, three to five years, five to seven years, seven to 10 years and more than 10 years.
Corptop is calculated as a performance index and a price index. It features additional key data such as average coupon, yield, duration and modified duration.
David Gandy, managing director at Reuters Information for equities and fixed income, said Corptop will enable customers to benchmark bonds in the euro fixed income markets at a time when the European corporate bond market is showing unprecedented activity.
The introduction of Corptop, the latest addition to Reuters' portfolio of bond indices, follows the popularity of bonds as a means of raising capital rather than by traditional methods like bank loans.
The weak euro has led to an explosion of European corporate bonds, with companies such as Fiat, Elf and Mannesmann all tapping into this market, according to the group.
Reuters provides the index data and a flexible, user-friendly distribution channel allowing users to download the data into spreadsheets. Reuters' clients can perform their own analytics or use the indices to create new financial instruments. The index values are fixed and published daily at 1730 CET/1130 EDT on Reuters pages Corptop01 and Corptop02.
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