S&P launches International Corporate Bond index

Standard & Poor’s has launched the S&P International Corporate Bond index, comprising public investment grade corporate bonds by issuers outside the US.

The index, denominated in US dollars, offers exposure to international corporate securities and measures the performance of corporate bonds issued in G10 currencies, excluding US dollars.

The S&P International Corporate Bond index comprises eurobonds and global bonds issued in euros and British sterling.

It also consists of domestic corporate bonds denominated in Australian dollars, Canadian dollars, Danish krone, Japanese yen, New Zealand dollars, Norwegian krone, Swedish krona and Swiss francs.

S&P Indices vice president JR Rieger says: "Investors in the US are increasingly looking to invest in global corporate bonds as they seek additional diversification and look for ways to protect themselves against the potential threat of a weakening US dollar."

The index provider says only fixed-rate, non-zero coupon bonds are eligible for inclusion. Covered bonds or bonds secured by mortgages are excluded from the index's universe, as well as fixed rate bonds with step-up coupons.

The index also excludes government, government agency, state, or any other forms of public debt or corporate debt with a government guarantee.

The currency weightings in the index, as of April 20, are euro (50%) sterling (25.5%) Japanese yen (7.7%) Canadian dollar (7.3%) Swiss franc (5.3%) Australian dollar (3.0%) Swedish krone (0.9%), New Zealand dollar (0.2%) and Danish krone (0.1%).