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NZX and ANZ are launching the ANZ Local Authority Bond (LAB) Index. The ANZ LAB index is the latest addition to the suite of ANZ Debt Indices, calculated and distributed by NZX. ANZ Debt Indices are widely used by investors to benchmark the performance of fixed interest investments in the New Zealand debt market.
Local Authority Bonds are senior debt securities issued in New Zealand dollars by local New Zealand authorities such as city councils. They are typically aimed at institutional investors and are traded on the NZX debt markets.
The ANZ LAB Index provides a benchmark for this rapidly growing market: total LAB issuance at present exceeds NZ $2 billion. A Department of Internal Affairs Local Government report in May 2009 stated that the council sector debt is expected to double from NZ $5.3 billion in July 2009 to NZ $10.6 billion by July 2019.
Dean Spicer, Head of Capital Markets, ANZ said “The growth and development in the Local Authority Bond space over the past two years warrants the introduction of a specific index. This enables domestic bank liquidity managers, institutional fund managers and international investors to monitor and benchmark the performance of this important investment sector. As a leading player in this market, ANZ is pleased to give our support to this new index.”
Geoff Brown, NZX Head of Market Products said “NZX is delighted to work with ANZ, a major participant in the NZDX Market, to continue to develop this set of indices. We have seen strong growth in both retail and institutional investor appetite for NZX listed fixed interest instruments, with the market offering a broader range of tradeable securities for the New Zealand investing public.”
In the last year the NZDX Market has grown 19% with NZDX market capitalisation at NZ $15.7 billion at the end of Q1 2010, compared with NZ $13.17 billion at the end of Q1 2009.
The ANZ LAB Index will complement other ANZ Debt Indices, comprising ANZ Government Bond Indices, ANZ Corporate Bond Indices, ANZ Bank Bill Indices, ANZ Kauri Indices and ANZ Swap Indices. These indices are distributed daily and monthly by NZX, and are available through the i- Search platform (www.i-search.nzx.com ).
Please direct any enquiries to data@nzx.com Details of the criteria for inclusion in the Local Authority Bond Index are available on the NZX
website at the following link:
http://www.nzx.com/markets/nzdx/anz-debt-indices/anz-local-authority-bond-index
