FTSE Russell recently announced the introduction of the FTSE TMX Canada NVCC Bond Index, the first standalone index of its kind designed for Canadian investors to specifically track the issuance and performance of Non-Viable Contingent Capital (NVCC) securities.
NVCC securities were introduced in Canada two years ago as an instrument to help Canadian banks strengthen their capital ratios to meet requirements of the Basel III Accord. These instruments contain a protective mechanism converting them into common shares if a bank’s viability is threatened.
This new segment of the Canadian market has grown substantially since the inception of the index on December 31, 2014, less than two years ago. As of November 30, 2016, the index had 14 issues from 5 issuers and a market capitalization of approximately $15.6 billion.
Marina Mets, Director at FTSE Russell Canada:
“This NVCC area is material and important enough to Canadian investors to warrant an index to specifically track and measure it. We believe our new index will enable our clients to better track and understand the nuances of what is clearly an evolving asset class in Canada.”
FTSE Russell is a leading provider of fixed income indexes in Canada with the FTSE TMX Global Debt Capital Markets, best known for the FTSE TMX Universe Bond Index. FTSE TMX Canada indices are used as benchmarks for assets globally invested across ETFs, mutual funds, and segregated mandates. FTSE TMX also provides its clients with the FTSE Bond (formerly PC-Bond) analytical system, which has been the market leader in fixed income portfolio management software in Canada since 1985.
More information on the FTSE TMX Canada NVCC Bond Index can be found on the FTSE Russell website.
