- New Index: FTSE MTS Lowest Rated Eurozone Government Bond IG 25+
- ETF to capture yield pick up on long maturities of peripheral euro debt
FTSE TMX Global Debt Capital Markets today announces that it has licensed a FTSE MTS index to Lyxor Asset Management (“Lyxor”) for the launch of an ETF which will track the FTSE MTS Eurozone Government Bond IG 25y+. This new index is an extension of the FTSE MTS Eurozone Government Indices series and measures the performance of a portfolio of bonds with maturities of more than 25 years, issued by euro-zone countries on the lowest side of the rating range.
The Lyxor ETF will be initially listed on Euronext and trade in Euros.
Mirela Vlad, Regional Director FTSE MTS Indices said:
“The current low yield environment is pushing market participants searching for returns towards securities with longer maturities and weaker ratings. This FTSE MTS index offers a measure for this type of holdings.“
Arnaud Llinas, Head of Lyxor ETFs and Indexing, said:
“Lyxor is always looking for new investment opportunities to meet investor needs and is expanding its fixed income ETF range accordingly. We are pleased to further develop our cooperation with a leading index provider, such as FTSE MTS, in order to bring efficiency and innovation to the ETF market.”
FTSE MTS indices are the first independent totalāreturn indices measuring the performance of the most liquid securities in the eurozone government bond market. The benchmark’s underlying data is real-time tradable prices from MTS, the leading electronic marketplace for< cash bond trading across Europe, with over 500 unique counterparties and average daily turnover exceeding €100 billion.
FTSE TMX Global Debt Capital Markets is the third largest global provider of fixed income ETF indices.