The Nasdaq OMX Group, Inc. (Nasdaq:NDAQ) and PC-Bond, a TMX Group subsidiary and long-time provider of benchmarks for Canadian fixed income investments, have entered into a partnership to provide a family of U.S. Treasury indexes - The RBC Insight Total Return U.S. Treasury (TRUST) Indexes.
The index series is designed to be a transparent and broad measure of the U.S. Treasury Note and Bond market while providing a unique viewpoint into the active U.S. debt issuance market via its daily rebalance methodology.
"By utilizing an objective and rules-based methodology, The RBC Insight Total Return U.S. Treasury (TRUST) Indexes exemplify our commitment to index transparency," said John Jacobs, Executive Vice President, NASDAQ OMX Global Indexes. "Through our partnership with PC-Bond, investors in the U.S. debt issuance market will have access to more information more frequently and therefore be able to make better informed investment decisions."
The RBC Insight Total Return U.S. Treasury (TRUST) Indexes are rebalanced daily and not at month-end like other U.S. and European bond indexes. Treasury indexes that rebalance daily offer the advantages of reduced tracking errors when rebalancing portfolios and provide a more accurate reflection of current market conditions. In addition, The RBC Insight Total Return U.S. Treasury (TRUST) Indexes have history dating back to December 31, 1998.
"Our partnership with NASDAQ OMX allows us to leverage our mutual strengths to provide the market with an index family that is transparent, accurate and a truer reflection of the U.S. Treasury market," said John McLean, Director, PC-Bond Index Group. "By utilizing a unique daily rebalance methodology, extremely reliable technology and NASDAQ OMX's far-reaching distribution capability, we are able to bring much greater clarity to the active U.S. debt issuance market."
Twenty-two indexes will begin disseminating today through NASDAQ OMX's flexible, premier delivery service for weightings data, NASDAQ OMX Global Index WatchSM (GIWSM). GIW is the only direct source for U.S. Treasury Fixed Income data.
This family adds to the NASDAQ OMX Global Index Group's global benchmark portfolio, providing investors with comprehensive insight into thousands of indexes across sectors and asset classes.