Tag Archives: total return
Investing in the U.S. Corporate Bond Market From an Asian Perspective
As Asian market participants have become more aware of the importance of portfolio diversification, they have been paying more attention to the U.S. corporate bond market. The S&P 500 Bond Index seeks to measure the broad and relatively liquid U.S. corporate bond market, and it is designed to be a corporate-bond counterpart to the iconic…
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Index Basics: Calculating an Index’s Total Return
Total return indices deserve more attention. They more closely represent what an investor actually takes home: the return of an index, plus dividends paid and reinvested in the index. Their better-known counterparts, which only track price changes in securities—often called “price return indices”1—get all the fanfare (see “Dow Hits 20,000 for the First Time”). Total…
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Sukuk Market in 2016: Year in Review
Global currency sukuk continued to expand in 2016. Increasing issuances were observed in U.S. dollar, Indonesian rupiah, and Pakistani rupee sukuk, though there were decreases in Malaysian ringgit and Bangladesh taka sukuk compared with last year.[1] The U.S. dollar and Malaysian ringgit sukuk continued to dominate the sukuk market. The Dow Jones Sukuk Index, which…
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Asian Fixed Income: What Does it Look Like Without India and China?
According to the S&P Pan Asia Bond Index, India and China together represented 79% of the overall market value as of April 18, 2016. While foreign investor access to these countries is opening up, the investability is still limited. The market value excluding these two countries is around USD 2 trillion, as tracked by the…
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Top Three Questions About Japan’s Bond Market
Question One: How big is Japan’s local currency bond market? How does it compare to China’s bond market? The size of the local currency bond market in Japan (tracked by the S&P Japan Bond Index) stood at JPY 1,154 trillion as of Jan. 27, 2016, which is equivalent to USD 9.7 trillion. It is 1.7…
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Asia Fixed Income: Foreign Investor Access to Onshore Chinese Bond Markets Grows
China continues to broaden foreign investor access to their onshore bond market. Luxembourg is the latest country being granted an RQFII quota by the People’s Bank of China, followed Canada, Germany, Qatar and Australia. According to the data published by State Administration of Foreign Exchange (SAFE) on April 29, 2015, the approved RQFII investment quota…
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2015 Resolution: Diversification
Most bond markets ended on a positive note in 2014. Some of the outperformers are the S&P Eurozone Developed Sovereign Bond Index (up 11.98%), the S&P U.S. Issued Investment Grade Corporate Bond Index (up 7.71%) and the S&P China Government Bond Index (up 10.35%). Yet the global yields remained low, i.e. the yield-to-worst of the…
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Asia Fixed Income: China – What’s More Than Yields?
Chinese bonds continue to attract attention from global investors as they offer relatively higher yields, what’s more, Chinese bonds also have historically demonstrated low correlations with global markets. Exhibit 1 shows the correlation of the S&P China Sovereign Bond Index with major sovereign bond indices in global markets. While the index has a low correlation of 0.09 with…
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U.S. Preferreds, An Option to Pick A Specialty
Preferred stocks are a class of capital stock that pays dividends at a specified rate and has a preference over common stock in the payment of dividends and the liquidation of assets. The S&P U.S. Preferred Stock Index is designed to serve the investment community’s need for an investable benchmark representing the U.S. preferred stock…
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Sukuk – Looking Behind the Numbers
The growing popularity of sukuk is reflected in the recent strong index performance.The Dow Jones Sukuk Index delivered a total return of 7.08% year-on-year (Y-o-Y) and 5.26% year-to-date (YTD), as of August 18, 2014. The index’s yield-to-maturity also tightened by 51bps YTD to 2.55%. Noticeably, the yield of the S&P MENA Sukuk Index dropped 55bps…
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