Tel Aviv Stock Exchange launches 3 new corporate bond indices and upgrades bond index methodology

Tel Aviv Stock Exchange launches 3 new corporate bond indices and upgrades bond index methodology

21/03/2012

At its meeting of 1/3/2012, the Tel Aviv Stock Exchange (TASE) Board of Directors approved the launch of three new Tel Bond indices, and amendments in the methodology for calculating corporate bond indices. This was held in order to improve the liquidity of TASE's corporate bonds market.
 
The new Tel-Bond indices, scheduled for launch on 1 May 2011, are:
 
Tel Bond CPI Linked Index – comprises all CPI-linked corporate bonds included in the bond index universe, which is being launched under the new methodology.
 
Tel Bond CPI Linked SmallCap Index– comprised of all CPI-linked bonds included in the bond index universe that are not constituents of the Tel Bond-60 index.
 
Tel Bond CPI Linked Banks Index - comprised of all CPI-linked corporate bonds issued by banks that are included in the bond index universe.
 
The new methodology for calculating bond indices is based on principles employed by equity indices methodology. Since March 2011, and will lead to a substantial increase in the number of bond series eligible for inclusion in TASE Tel-bond indices.
 
The new indices and the increase of market value reflected in TASE's Tel Bond indices should anticipate improvement in the liquidity of TASE's corporate bonds market.
 
The following table summarizes the anticipated changes:  
 

Current indices

New Methodology

Current Methodology

Index

No.

No. Series

Market Cap

($ Billions)

No. Series

Market Cap

($ Billions)

43

9

23

5

Tel Bond-Shekel

1

20

15

20

13

Tel Bond-20

2

40

14

40

10

Tel Bond-40

3

60

29

60

22

Tel Bond-60

4

New indices

No. Series

Market Cap

($ Billions)

Index

No.

164

43

Tel Bond-CPI Linked

1

104

14

Tel Bond CPI Linked-SmallCap

2

57

17

Tel Bond CPI Linked-Bank

3