The S&P/ASX Bank Bill Index seeks to measure the performance of the Australian bank bill market, with maturities of up to 91 days. The series is designed for use by institutional investment managers, mutual fund managers, professional advisors, insurance companies, and custodians.
- How does the Australian bank bill market satisfy short-term cash balance investments?
Many financial institutions have cash balances that can be invested in short-term money market instruments.
Insurance companies have cash balances derived from:
- A general account to support future claims;
- An operating account used to receive premiums and pay claims; and
- A collateral or hedging account to manage funds.
Asset or fund managers and custodians need short-term investment solutions for omnibus accounts that represent cash-swept balances of client holdings. They can maximize their cash balances by investing in liquid products based on Australian bank bills.
- How is the S&P/ASX Bank Bill Index constructed?
The index is based on the benchmark bank bill rates published by the ASX Benchmarks Pty Limited (ASXB). The S&P/ASX Bank Bill Index is rules based for transparency and follows a select set of eligibility criteria.
The index comprises four benchmarks and nine interpolated rates that are differentiated by the range of maturities of its constituents as follows.
The index is constructed synthetically through interpolated Bank Bill Swap (BBSW) rates, which are administered through procedures set forth by the ASXB. Detailed information on BBSW procedures can be
