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18/12/2009 Dow Jones Corporate Bond Index to Underlie First Fixed Income Exchange-Traded Note in Israel

DESERTO

Dow Jones Indexes, a leading global index provider, today announced that the Dow Jones Corporate Bond Index will serve as the basis of the

first fixed-income exchange-traded note (ETN) available in Israel. This is the first time the index has been licensed as the basis for an exchange-traded product globally. The ETN is sponsored by Harel SAL, a subsidiary of Harel Finance, and is available on the Tel Aviv Stock Exchange.

In addition to the Dow Jones Corporate Bond Index, Dow Jones Indexes licensed the Dow Jones Brazil Titans 20 Index as the basis for an ETN that was listed at the Tel Aviv Stock Exchange last week.

 

“The Dow Jones Corporate Bond Index measures the market performance of a small, diversified and readily tradable basket of investment-grade bonds issued by U.S. companies. The equal weighting of the basket prevents large borrowers from significantly impacting the index. For the first time, Israeli investors will have access to a reliable and consistent portfolio of high-quality U.S. corporate debt instruments through Harel’s new ETN,” said Michael A. Petronella, president, Dow Jones Indexes.

 

The Dow Jones Corporate Bond Index is an equal-weighted index of 96 investment-grade corporate bonds with laddered maturities. It measures the performance of readily tradeable, high-grade corporate bonds on a total-return basis. The index can be further subdivided into sector indexes for Financials, Industrials, and Utilities/Telecom, each of which has a yield curve index series. All issues in the index are equally weighted in the maturity cells, sectors and the composite index. The maturity cells are 2, 5, 10 and 30-year cells.

 

The Dow Jones Corporate Bond Index is calculated by Ryan Labs, a New York-based fixed income asset manager. The index is rebalanced monthly and daily historical data is available back to December 31, 1996.

Source: ETFWorld – Dow Jones Indexes

 

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