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- The Tel-Bond 40 – Shall include rated fixed-interest corporate bonds linked to the consumer price index that have the highest market capitalization among the bonds not included in the Tel-Bond 20 index.
- The Tel-Bond 60– Shall include the bonds in the Tel-Bond 20 and the Tel-Bond 40 indices.
The index bonds shall be weighted by the ratio between their market capitalization and the aggregate market capitalization of all the bonds in the index. If the weight of a single bond is greater than 9.5%, then its weight shall be set at 9.5%, and any surplus weight shall be shared among the other bonds in the index (as is done in the case of the TA-25 index and TA-100 index).
The indices shall be rebalanced twice a year, on April 1 and October 1, together with the Tel-Bond 20.
Demand for corporate bonds among institutional investors spurred growth in that market during 2007, leading to the issue of 150 new series of corporate bonds. The Tel-Bond 20 index, which was launched at the beginning of 2007, was highly successful. During the year six ETFs tracking the index were introduced, with assets totaling NIS 3.5 billion. The two new indices will meet the demand for ETFs on corporate bonds, and will generate a series of market indices for bonds – the Tel-Bond 20, Tel-Bond 40 and Tel-Bond 60, like the series TA-25, TA-75 and TA-100.
"The new Tel-Bond indices will bring investors an important tool to track the performance of corporate bonds, and can serve as an underlying asset for ETFs," commented Dror Shalit, Senior VP and Head of the Trading and Clearing Department. "The introduction of the indices will render investment in bonds included on them more liquid, and enable investment in a wider basket of bonds."
