Bond market indexing

Overview
Bond indexes were initiated in the early 1970s as a means by which to measure bond performance. Unlike stocks, which mostly trade on exchanges, bonds are primarily traded in the over the counter market. The first bond indexes were thus developed by investment bankers. In 1973, Kuhn, Loeb created three U.S bond indexes and Salomon Brothers introduced its Long-Term High-Grade Corporate Bond Index. Kuhn, Loeb was subsequently acquired by Lehman Brothers and the indexes became the Lehman indexes, which were to become the dominant U.S index family. Salomon Brothers was subsequently absorbed by Citibank.

By the early 1990s, U.S. indexes were being published by J.P. Morgan, Lehman Brothers, Citibank and Merrill Lynch After the collapse of Lehman Brothers in 2008, Barclays Capital acquired the Global Family of Indices as part of its acquisition of Lehman Brothers' North American Capital Markets and Research groups. All legacy Lehman Brothers benchmark indices were rebranded as Barclays Capital Indices. Bank of America acquired Merrill Lynch on Jan. 1, 2009. The indices will remain as Merrill Lynch. Index providers S&P and Morningstar also provide bond indexes.

In 2002, a consortium of leading European and U.S. banks launched the Euro and Sterling iBoxx indexes. The iBoxx indexes are now the primary indexes used in Europe and the U.K. both for benchmarking and as the basis for ETFs and structured products.

Major Index Providers

 * Barclays Capital Indices Select Aggregate/Bond indices. Enable cookies to view.


 * FTSE Fixed Income and Currency Indices


 * JP Morgan Bond Indices


 * Markit iBoxx - Select Bonds from the menu.
 * Markit iBoxx Benchmark Indices (direct link)
 * Markit iBoxx Liquid Indices (direct link)


 * BofA Merrill Lynch Bond Indices


 * Morningstar Bond Indexes


 * S&P Fixed Income Indices

US Market
Barclays
 * Barclays Capital US Aggregate Bond Index - composition, returns
 * Vanguard funds tracking Barclays Capital's indexes

Bond Funds
 * Short Term US Taxable Bond Funds
 * Short Term US Tax Exempt Bond Funds

Exchange Traded Funds

 * Bond ETFS

Index Methodology

 * Barclay's Fact Pages
 * FTSE
 * FTSE Global Bond Series
 * FTSE UK Gilts
 * Markit Iboxx Index Rules
 * BofA Merrill Lynch Global Bond Index Rules
 * Morningstar
 * S&P Fixed Income Indices. Each fixed income series has its own methodology rulebook, accessed on each index page description. Example: S&P/BGCantor U.S. Treasury Bond Index