SÃO PAULO, April 13,
2023 /PRNewswire/ -- S&P Dow Jones Indices
("S&P DJI"), the world's leading index provider, and B3, the
exchange of Brazil, today
announced the debut of two new bond indices, the first in a series
of fixed income indices for Brazil's domestic corporate bond market.
The series of indices include the S&P/B3 Brazil IPCA
Corporate Bond Index and the S&P/B3 Brazil Liquid IPCA
Corporate Bond Index, which measure the performance of
local currency domestic debentures linked to the Índice Nacional de
Preços ao Consumidor Amplo (IPCA). The S&P/B3 Brazil Liquid
IPCA Corporate Bond Index includes additional liquidity
criteria.
The indices use a rules-based selection criteria based on
relevant fixed income principles to select and weight its
constituents. The objective is to measure core exposure to
incentivized debentures, or tax-beneficial bonds, a key segment of
the bond market.
"The S&P/B3 Corporate Bond Indices are the latest addition
of fixed income indices that expand our offering in Brazil," said Frans
Scheepers, Head of Fixed Income, Currency and Commodity
Products at S&P Dow Jones Indices. "We have designed these
bond indices to offer broad coverage of the IPCA-linked debenture
market, providing institutional investors with objective benchmarks
which they can use to measure and execute their market views. We're
pleased to work with the B3 to bring more visibility to the
Brazilian corporate bond market and support tools for new tradeable
product creation."
"The indices will allow the launch of new products such as
exchange-traded funds and other index-based funds, and help
facilitate an accessible channel for investors wishing to track
tax-beneficial bonds. New products such as these indices help bring
diverse exposures to client portfolios with respect to the
Brazilian fixed income market," said Henio Scheidt, Index Manager at B3.
The new corporate bond indices will complement the existing
fixed income offering in Brazil,
which includes the S&P/B3 Brazil Sovereign Inflation-Linked
Bond Index and the S&P/B3 One-Day Interbank Deposit 3Y Futures
Index.
Index Methodology
S&P Dow Jones Indices use a variety of criteria in
constructing and maintaining fixed income indices.
A majority of S&P Dow Jones fixed income indices are market
value weighted, where each bond's weight in the index is
proportional to its market value. In this case, and to be eligible
for index inclusion, bonds must have a minimum market value of
BRL 100 million.
The S&P/B3 Brazil Liquid IPCA Corporate Bond Index uses the
prior three months to determine eligible debentures based on
trading volume, which must have a median value traded of
BRL 100,000. It is a
capitalization-weighted index, also known as a market
value-weighted index, to ensure adequate liquidity is represented
throughout its constituents.
Please visit www.spdji.com for more information about the
methodology behind the S&P/B3 Bond Indices. For the full range
of credit scales, symbols and definitions used by each Nationally
Recognized Statistical Rating Organizations, please refer to each
respective agency's website.
ABOUT S&P DOW JONES INDICES
S&P Dow Jones Indices is the largest global resource for
essential index-based concepts, data and research, and home to
iconic financial market indicators, such as the S&P 500® and
the Dow Jones Industrial Average®. More assets are invested in
products based on our indices than products based on indices from
any other provider in the world. Since Charles Dow invented the first index in 1884,
S&P DJI has been innovating and developing indices across the
spectrum of asset classes helping to define the way investors
measure and trade the markets.
S&P Dow Jones Indices is a division of S&P Global (NYSE:
SPGI), which provides essential intelligence for individuals,
companies, and governments to make decisions with confidence. For
more information, visit https://www.spglobal.com/spdji/en.
ABOUT B3
B3 S.A. (B3SA3) is one of the world's leading financial market
infrastructure companies and one of the largest by market
capitalization among the global leaders in the exchange industry.
It connects, develops and makes the financial and capital markets
viable and, together with customers and society, boosts
Brazil's growth.
It operates in the exchange and over-the-counter environments,
in addition to offering products and services for the financing
chain. Headquartered in São Paulo and with offices in Chicago, London, Singapore and Shanghai, it plays important roles in the
market by promoting best practices in corporate governance, risk
management and sustainability.
B3. With the market, for the future.
The S&P/B3 Corporate Bond Indices are products S&P Dow
Jones Indices LLC or its affiliates ("SPDJI"). S&P® is a
registered trademarks of Standard & Poor's Financial Services
LLC ("S&P"); Dow Jones® is a registered trademark of Dow Jones
Trademark Holdings LLC ("Dow Jones"); B3® is a registered trademark
of B3 S.A. These trademarks have been licensed for use by SPDJI.
Investment products based on the S&P/B3 Corporate Bond Indices
are not sponsored, endorsed, sold or promoted by SPDJI, Dow Jones,
S&P, or their respective affiliates and none of such parties
make any representation regarding the advisability of investing in
such product(s) nor do they have any liability for any errors,
omissions, or interruptions of the Indices.
FOR MORE INFORMATION:
S&P Dow Jones Indices
Alyssa Augustyn
Americas Communications
(+1) 773 919 4732
alyssa.augustyn@spglobal.com
B3
+55 11 2565 7639
imprensa@b3.com.br
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SOURCE S&P Dow Jones Indices