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Boerse Stuttgart is to launch an index for the Bondm trading segment on 1 September 2011. The easily replicable index will track the performance of the 18 corporate bonds listed and traded in Boerse Stuttgart's Bondm segment for medium-sized enterprises. This makes the Bondm index Germany's first trend and market indicator for the bond issues of medium-sized enterprises. The index will be calculated as a pure performance index. This means that coupon payments will be reinvested in the index. Boerse Stuttgart's partner in implementing and calculating the index will be Structured Solutions AG, based in Frankfurt/Main.
"With the new Bondm index we will bring additional transparency to the stock exchange market for the bonds of medium-sized enterprises. As a meaningful benchmark, the index will allow investors to compare the performance of individual bonds directly with the leading trading segment, Bondm, and to measure the investment success of the entire Bondm segment," says Christoph Lammersdorf, CEO of Boerse Stuttgart Holding GmbH. The liquidity in the secondary market of the Bondm segment will also ensure an index of high quality.
The Bondm index will calculated and published minute by minute on each trading day from 9.00 h until 18.00 h (CET) on the basis of the traded prices of the corporate bonds listed there. In the index all bonds will be weighted according to their market capitalisation with the maximum weighting per bond being limited to ten percent. The bonds must have a residual term to maturity of at least 12 months. Each issuer can have a maximum of two bonds listed in the index. Once every month new issues can be admitted to the index or adjustments made to the weightings.
The start value of the Bondm index is set at 100 with retrospective effect dating from 3 January 2011. Historical data are kept from then on.
