The consultation exercise asks market users for views on a range of issues affecting the index design, including inclusion and exclusion of types of bonds, liquidity levels and valuation bands. The consultation will close on Wednesday September 19.
FTSE has contacted a range of potential users of this index, including money managers and consultants, to ask for feedback on the proposed index design. The on-line questionnaire is also available at http://www.ftse.com/corpbonds.html and all interested parties are invited to register their views. The FTSE Corporate Bonds Committee, which will oversee the management of this index, will review all comments received during the consultation and ensure the final design of the index reflects the needs of the market.
Carl Beckley, Director Markets Development, FTSE commented, "As the supply of UK gilts decreases the market is looking for alternative investment opportunities - this need is being met by a steady increase in corporate bond issues. The new FTSE Corporate Bond index will complement the FTSE Gilts index and will meet the needs of investors in UK corporate bonds."
Final details of the index design, including comprehensive Ground Rules, will be announced in early 2002.
