Thomson Reuters BPA Malaysia Bond and Sukuk Indices

Thomson Reuters Indices has teamed up with Bond Pricing Agency Malaysia to provide the most comprehensive range of Malaysian Fixed Income and Sukuk benchmarks available. The indices combine BPA Malaysia’s extensive experience of consistent and market neutral valuations with years of index calculation experience at Thomson Reuters.

The new family of indices include 108 Malaysian Ringgit Sukuk and bond indices comprising 36 Thomson Reuters-BPAM Malaysian Sukuk Indices, 36 Thomson Reuters-BPAM Malaysian Bond Indices and 36 Thomson Reuters-BPAM All Bond and Sukuk Indices covering 778 issues. The Indices cover six bond classes, are archived back to 2007 and have total market capitalization of MYR583,624 million (US$182 billion).

Highly liquid index variants which feature only the top 5 bonds by volume are also available, making them ideal for use as investment products.

To view the indices on Thomson Reuters Eikon on Reuters 3000 Xtra, please use the RIC: 0#BPAMINDEX

For more information, download the factsheets below:

• Thomson Reuters BPA Malaysia Fixed Income and Sukuk Indices Overview 501K
• Thomson Reuters BPA Malaysia All Bond Index Series 523K
• Thomson Reuters BPA Malaysia Liquid Index Series 875K
• Thomson Reuters BPA Malaysia All Bond Index Series and Variants 534K
  
• Thomson Reuters BPA Malaysia Liquid Index Series and Variants 134K
  

The Thomson Reuters CDS Indices

Thomson Reuters proprietary credit default swap (CDS) indices are uniquely designed to track credit risk of the particular markets. They are volume-weighted and comprise constituents hand picked by major regional dealers to reflect liquidity. Index constituents are reviewed with participating dealers every six months prior to rolls.

Thomson Reuters CDS Indices are available on Thomson Reuters Eikon and Reuters 3000 Xtra from the speedguide <TRXCDS> and include the following markets:

• Reuters Insider Eurozone Index
• Thomson Reuters Emerging Europe Index
• Thomson Reuters Reinsurance Index
• Thomson Reuters Emerging Asia Index
• Thomson Reuters Latam Index
• Thomson Reuters Counterparty Default Senior Index
• Thomson Reuters Counterparty Default Subordinate Index

For more information, download the fact sheet below:

• Thomson Reuters Emerging Asia CDS Index fact sheet PDF
• Thomson Reuters LATAM CDS Index fact sheet PDF
• Reuters Insider Eurozone CDS Index PDF

The Thomson Reuters VRDO Index

The Thomson Reuters VRDO Index is designed to track the performance of a pool of tax-exempt Variable Rate Demand Obligations (VRDOs) issued by municipalities in the United Sates on which the yields generally reset on a weekly basis. VRDOs are high-quality, floating-rate bonds that provide investors with tax-exempt income. VRDOs are generally purchased at par. When they are put back to an investment dealer, the investor generally receives par plus accrued interest.

The index is available for license through the Thomson Reuters Indices license team.

For more information, download the fact sheet below:

• Thomson Reuters VRDO Index fact sheet (coming soon)

THE THOMSON REUTERS GOVERNMENT BOND INDICES

The Thomson Reuters Government Bond Indices have been calculated by Datastream since 1985. The indices have been constructed according to the EFFAS (European Federation of Financial Analysts Societies) rules for bond indices.

Thomson Reuters aims to offer as transparent and flexible a set of bond indices as possible. To this end, each index contains only those bonds that follow the rules agreed by the subcommittee and all indices have been rigorously back tested. All series were originally calculated to 30th December 1988, now most markets are calculated to an earlier start date.

Basic Principles

Due to the various users of bond indices who all have different requirements there are 3 types of bond indices calculated. The all traded Index is largely required by domestic investors as they are long term investors whose portfolio would tend to encompass both liquid and illiquid bonds. As price collection in some regions may be difficult, a proxy is needed for the all traded which depends on a sample of bonds, yet tracks the all traded well. This is referred to as the tracker index.

In addition, some international investors are more interested in the most liquid bonds within the sector. To satisfy this use case, Thomson Reuters also provides Datastream calculated benchmark indices.

For more information, please view the Government Bond Indices User Guide.