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Investors are increasingly casting an eye toward local currency bonds as a means of generating additional diversification properties within their portfolios.
The potential for inflationary pressures across the developed and emerging markets is real, and investors realize this. Today’s launch of the S&P Global Sovereign Inflation-Linked Bond Indices allows investors to effectively gauge the relative risk and performance of the country debt being issued across developed and emerging markets in Africa, Asia-Pacific, Europe, and the Americas. It also represents an important milestone for S&P Dow Jones Indices in its pursuit to publish a deeper lineup of indices across more bond types globally.
S&P Dow Jones Indices (S&P DJI) has launched a suite of global inflation-linked sovereign indices that measure inflation-linked country debt as investors are turning an increasingly keen eye on inflationary issues across developed and emerging markets.
The launch of the S&P Global Sovereign Inflation-Linked Bond Indices is part of S&P DJI’s global initiative to expand its fixed income index offerings globally across more bond types, says S&P DJI.
The inflation-linked indices are broad, comprehensive, market value-weighted indices that seek to measure the performance of the inflation-linked securities market. They are comprised of a universe of fixed rate, locally denominated inflation-linked sovereign debt publicly issued by governments in their domestic markets, S&P DJI adds.
The index family includes the S&P Global Sovereign Inflation-Linked Bond Index, which tracks the performance of developed-market inflation-linked sovereign debt issued by Australia, Canada, Denmark, Israel, Japan, New Zealand, South Korea, Sweden, UK, US, and the Eurozone.
S&P DJI also launched S&P Eurozone Sovereign Inflation-Linked Bond Index, which is a subset of the S&P Global Developed Sovereign Inflation-Linked Bond Index and tracks the performance of developed-market Eurozone inflation-linked sovereign debt issued by France, Germany, Italy, and Spain.
The index family also includes S&P Global Emerging Sovereign Inflation-Linked Bond Index that tracks the performance of emerging-market inflation-linked sovereign debt. The structure of the S&P Global Emerging Sovereign Inflation-Linked Bond Index currently consists of country debt issued by Brazil, India, and Poland.
Alex Matturri is CEO of S&P Dow Jones Indices
