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Solactive is delighted to announce the collaboration with Crédit Agricole Corporate and Investment Bank by launching a series of government bond yield indices. These indices belong to the Solactive Constant Maturity Government Bond Index Family, which offers transparent and precise benchmarks essential for supporting the design and innovation of structured products in the fixed income sector. Currently, this sector is under-represented relative to the market’s substantial size. Additionally, these indices will also be used for swaps or notes with special features, such as optional redemption features and/or path dependent higher coupons. They will also enable portfolios to be managed and respond effectively to market changes. These government bond yield indices are essential for capturing risks, ensuring transparency, and supporting informed investment decisions.
The Solactive Constant Maturity Government Bond Index Family currently covers France, Germany, Italy, Belgium, and Spain through the Solactive OAT 10, BUND 10, BTP 10, OLO 10, and SPGB 10 bond yield indices. In addition to these indices, customized indices can be created for any developed or emerging market and for the desired bond maturity. With monthly rebalancing, the indices maintain a nearly constant maturity exposure, and can be seen as benchmark for the respective maturity (yield or performance respectively).
Timo Pfeiffer, Chief Markets Officer at Solactive, commented: “With persistent inflation, fluctuating debt levels, and ongoing macroeconomic uncertainties, the demand for innovative fixed income products using robust fixed-income benchmarks has never been greater. We are excited to embark with Crédit Agricole CIB, providing transparent and precise indices to navigate the complexities of today’s bond market.”
Nicolas Randazzo, European Head of Fixed Income FI Structuring at Crédit Agricole CIB, comment: “The sovereign bond market is the world’s largest debt market, it was therefore absolutely essential to give investors a simple and direct access to market benchmarks on sovereign yields. It is now easy to diversify interest-rate exposure in structured products and to build country-specific exposure. We are very proud of this collaboration with Solactive, with whom we share the same ambition: to make the government bond market easily accessible to as many investors in as many investment formats as possible.”
