HONG KONG, DECEMBER 12, 2023: S&P Dow Jones Indices (“S&P DJI”), the world’s leading index provider, and ChinaBond Pricing Center Co., Ltd ("CBPC") today announced the launch of the iBoxx ChinaBond Asian High Yield Index Family. The indices track and measure the performance of U.S. dollar (USD), Chinese yuan (CNY) and Singaporean dollar (SGD)-denominated high yield bonds from Asian bond issuers and allow investors to access credit risk as the predominant risk factor in their Asian high yield strategies. The iBoxx ChinaBond Asian High Yield Index Family includes:
- iBoxx ChinaBond Asian High Yield (USD Hedged)
- iBoxx ChinaBond Asian High Yield (USD Unhedged)
- iBoxx ChinaBond Asian High Yield USD Sub-Index
- iBoxx ChinaBond Asian High Yield CNY Sub-Index
- iBoxx ChinaBond Asian High Yield SGD Sub-Index
This newly launched index series expands S&P DJI’s existing product suite of iBoxx ChinaBond indices, which is a joint initiative between S&P DJI and CBPC. The iBoxx ChinaBond index family reflects and combines CBPC’s bond valuation data and domestic market knowledge with S&P DJI’s global fixed income indexing capabilities. The index series provides investors with an independent, transparent, and objective way to evaluate the performance of China’s bond market and investments.
Randolf Tantzscher, Global Head of Fixed Income Growth & Development, S&P Dow Jones Indices, said, “We are pleased to collaborate once again with CBPC to launch the iBoxx ChinaBond Asian High Yield Index Family. This latest addition to S&P DJI’s iBoxx indices is timely and significant as global investors continue to utilize high-quality benchmarking tools that can help them effectively measure, analyze and capture risks and opportunities in the Asian high yield bond market.”
ChinaBond Pricing Center says that the continued collaboration between S&P DJI and CBPC seeks to serve a broader investor base beyond China in meeting their need for timely and efficient analytics on China’s bond market. As the key benchmark provider in China’s fixed income market with wide product application, CBPC strives to present the local knowledge to global investors in an era when connection is essential for truly diversified investment.
The index series provides exposure to a broad universe of rated and unrated high yield SGD and USD-denominated bonds from Asian issuers as well as high yield CNY-denominated bonds with an international rating issued in the China Interbank Bond Market. The index constituent selection process is based on several criteria and designed to meet minimum standards of replicability, diversification, investability, and liquidity. All bonds must have a remaining time to maturity of at least one year at rebalancing to meet the selection criteria. Stringent diversification rules in the new indices, alongside other rules built upon iBoxx’s years of experience building fixed income indices, have facilitated the creation of a best-in-class institutional quality index series. As of the end of September 2023, the iBoxx ChinaBond Asian High Yield (USD Unhedged) index has approximately 85% exposure to USD high yield bonds and 15% exposure to local currency high yield bonds. The indices are rebalanced monthly on the last business day of the month.
Since inception, the iBoxx ChinaBond Asian High Yield (in USD Unhedged terms) returned 1.7% on an annualized basis, outperforming Asian USD High Yield bonds – as represented by iBoxx USD Asia ex-Japan High Yield 1+ – by 1.0%.
For more information about the iBoxx ChinaBond Asian High Yield, please visit the following websites: https://indicesweb.ihsmarkit.com/iBoxx/details/index?id=mkt.gb00b2rbnr71.usd.l.15374_usd_n_u_eu_eod_calc;
http://yield.chinabond.com.cn/cbweb-mn/indices/single_index_query?locale=en_US
For more information about iBoxx™ Bond & Loan Indices and research, please visit: https://www.spglobal.com/spdji/en/indices/products/iboxx.html.
