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The Bloomberg US Aggregate Bond Index, or the Agg, is a broad base, market capitalization-weighted bond market index representing intermediate term investment grade bonds traded in the United States. Investors frequently use the index as a stand-in for measuring the performance of the US bond market .
The difference between the full capitalization, float-adjusted, and equal weight versions is in how the index components are weighted. The full cap index uses the total shares outstanding for each company. The float-adjusted index uses shares adjusted for free float. The equal-weighted index assigns each security in the index the same weight.
(Bank of America) Merrill Lynch High-Yield Master II; Barclays High-Yield Index; Bear Stearns High-Yield Index; Citi US High-Yield Market Index (Credit Suisse) First Boston High-Yield II Index
Vanguard Long-Term Bond ETF (BLV) – This fund aims to track the performance of the Bloomberg U.S. Long Government/Credit Float Adjusted Index and provide a high level of current income with high ...
If the inflation index increased by 10%, the principal of the bond would increase to 110 units. The coupon rate would remain at 5%, resulting in an interest payment of 110 x 5% = 5.5 units. For other bonds, such as the Series I United States Savings Bonds , the interest rate is adjusted according to inflation.
It has been called the "Bond Market's Scariest Gauge", and hit an all-time low of 0.1968 for the Bloomberg Barclays US Corporate Bond Index on Dec 31, 2020. [30] The ratio is simply the yield offered (as a percentage), divided by the bond duration (in years).
A deleveraged floating-rate note is one bearing a coupon that is the product of the index and a leverage factor, where the leverage factor is between zero and one. A deleveraged floater, which gives the investor decreased exposure to the underlying index, can be replicated by buying a pure FRN and entering into a swap to pay floating and ...
A number of bond indices exist for the purposes of managing portfolios and measuring performance, similar to the S&P 500 or Russell Indexes for companies' shares. The most common American benchmarks are the Bloomberg Barclays US Aggregate (ex Lehman Aggregate), Citigroup BIG and Merrill Lynch Domestic Master. Most indices are parts of families ...