News Releases
Barclays Capital achieves inflation market first with launch of emerging market indices
LONDON – Barclays Capital, the investment banking division of Barclays Bank PLC, today announced the launch of a family of local currency Emerging Market Government Inflation-Linked Bond (“EMGILB”) benchmark indices. This is the first time that a full family of indices has been available to asset managers and institutional investors looking for a representative benchmark for government inflation-linked debt within developing nations. They were created by the Barclays Capital Index Products Group and approved by the independent Barclays Capital Inflation-linked Index Committee.
Individual indices track the performance of inflation-linked bonds issued by the sovereign governments of
Diego Gradowczyk, Managing Director, Head of Latin America Credit/Rates and EMEA Credit Trading at Barclays Capital said: “The new global EM Government Inflation-linked Bond indices are another step forward in the development of these markets and is testament to the growing demand for exposure to inflation across the globe.”
“These new benchmark indices complement and build on our existing family of inflation indices, underscoring Barclays Capital’s commitment to the inflation-linked market and to meeting investors’ needs for diversification in emerging markets,” commented Waqas Samad, Head of Index Products at Barclays Capital.
Ralph Segreti, Global Inflation-Linked Product Manager added: “Investors need a reliable benchmark, and as the global leader in inflation-linked trading, products & indices, we were ideally placed to create a market standard.”
Barclays Capital will also make customized indices available and provide support and analytics for these indices via web based and other e-commerce protocols. The indices are calculated daily and use standard settlements and market calendars most appropriate for international investors. Complete index rules are available in Barclays Capital’s new Inflation-linked Emerging Markets Index Guide.
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For further information, please contact:
Kristin Friel, Barclays Capital Communications
+1 212 412 7521
kristin.friel@barclayscapital.com
Will Bowen, Barclays Capital Communications
+ 44 20 7773 3250
will.bowen@barclayscapital.com
Notes to editors:
About the Barclays Capital EMGILB indices
The Barclays Capital Emerging Markets Government Inflation Linked Bond Index (EMGILB) measures the total return performance of inflation-linked bonds from the major emerging market countries. The index includes government debt i.e. direct obligations of the state issuer. Quasi-government and corporate debt is not included in the index.
The index currently consists of 43 bonds from 9 countries and has an overall market capitalisation of around $200 billion. The 5 LATAM markets account for around 90% of the overall index capitalisation.
Daily historical index levels and statistics are available back to January 2004, with longer histories for individual countries/regions where available. As well as an overall index, sub-indices are available by country, region and maturity enabling Barclays Capital to tailor the index to specific client needs. Return series are calculated daily in local currency terms and both hedged and un-hedged in a variety of currencies.
About Barclays Capital’s Inflation-linked offering
Barclays Capital is a leader in inflation-linked products. We are a key market maker in global inflation-linked securities, a top-tier lead-manager of issuance and a major innovator in this asset class across cash, derivatives and structured note products. We have one of the largest inflation-linked bond franchises globally, devoting significant resources to origination, trading, research and analytical tools. We have earned widespread recognition for our expertise and innovation in this important segment of the fixed income market.
Barclays Capital has led the way in supporting and advising on the issuance of and investment in inflation-linked bonds. In
Barclays Capital also has a global research team dedicated to the inflation-linked asset class focussing on all aspects of bond and inflation derivatives.
We offer extensive web-based analytics for clients, making available our substantial inflation-linked bond database, complete with on-line tools to interrogate and chart the information. We also provide interactive forward rate, carry and breakeven protection analysis.
About Barclays Capital
Barclays Capital is the investment banking division of Barclays Bank PLC which has an AA long-term credit rating and a balance sheet of over £1.1 trillion (US$2.3 trillion*). With a distinctive business model, Barclays Capital provides large corporate, government and institutional clients with solutions to their financing and risk management needs. Barclays Capital has offices in 26 countries, employs over 15,700 people and has the global reach and distribution power to meet the needs of issuers and investors worldwide.
For further information about Barclays Capital, please visit our website www.barclayscapital.com.
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