LEHMAN Brothers has launched a new bond index, the Euro-aggregate index, in a bid to position itself as a major indices provider in Europe ahead of the arrival of the single currency. The index will only include bonds denominated either in Ecu or those currencies entering European monetary Union and will be a rule-based measure automatically including all issues which fit the inclusion criteria. These criteria state that bonds must be investment grade, fixed rate and with a maturity of at least one year. Treasury securities must have a minimum size of Ecu500m and all others a minimum size of Ecu100m. Over 6800 bonds are in the index which has a market cap of Eu3.6tr, and portfolio managers will be able to follow the aggregate index or a sub index derived from the aggregate index which can be customised for their fund.
July 03, 1998