In February 2007, the first Tel Bond index was launched – Tel Bond 20, since then the Tel Bond family has grown to 29 indices with a total investment in these indices of approximately NIS 37 billion and has become the leading index segment in Israel.
The Tel-Bond Indices series includes bonds issued by corporations and is characterized by conservative characteristics such as investment ratings, weight limit in the index for each issuer and more. Bonds issued as financial instruments such as issued deposits.
The minimum market value criterion will be the same as the Tel Bond indices, ie the minimum value of bonds included in the index will be NIS 100 million and for new bonds NIS 150 million. At the time of launch, the minimum market value criterion for all bonds will be NIS 100 million.
In addition, the portfolio will only include bonds that are rated at least a local investment rating (-BBB).
General bond index as a basis for developing the All-Bond series
The existing “general bonds” index includes all bonds traded on the stock exchange and is used as the oldest and most popular benchmark index in Israel. The index was launched in January 1984 along with 7 other indices, but these indices were launched as benchmark indices calculated only at the end of the day. Adapted to consecutive financial products.
Upgrading the general bond index and adjusting it to imitative financial products will meet a clear need of the capital market and will provide an investment solution in one of the most important and popular bond indices in Israel.
The TASE will launch a new series of All-Bond indices, which will be calculated in real time and according to an orderly methodology – a general All-Bond index that will replace the General Bond Index and an indexed All-Bond index that will replace the CPI-linked bond index. In addition, two new indices will be launched – the NIS All-Bond Index, which will include non-indexed government bonds and fixed-rate corporate bonds, and a variable All-Bond index, which will include non-indexed government bonds and corporate bonds that bear variable interest rates.
Also, under the new methodology, the calculation of 6 end-of-day bond indices that are no longer relevant will be discontinued.
The launch date of the new indices will be May 23, 2021 (the semi-annual update date of the bond indices in May). The determining date for determining the composition of the index will be the end of trading on April 29, 2021.
A draft of the public’s comments on this subject appeared today in the “Maya” system of the stock exchange: For a draft in Maya
attache
Changing existing indices and launching new ones
The following changes are proposed:
The index population will include only bonds that meet the rating and value conditions as specified in the proposed resolution.
Main data of All-Bond indices (billions of NIS)
|
|
general (CAP 1.5%) |
Tight (CAP 3%) |
Shekels (CAP 3%) |
variable (CAP 20%) |
|
Several series |
448 |
185 |
235 |
9 |
|
Market value
|
864 (Weight attached – about 49%) |
395 |
422 |
36 |
|
Several government series |
29 |
12 |
15 |
2 |
|
Government market capitalization |
563
|
223 |
309 |
32 |
|
Original government weight |
65.2% |
56.5% |
73.1% |
87.9% |
|
Government weight in the index |
40.7% |
30.5% |
45% |
40% |
|
Weighted MHM |
5.53 |
5.95 |
4.91 |
5.27 |