Dow Jones creates index series for Latin American fixed-income market

By Devika Patel

Knoxville, Tenn., June 24 - Dow Jones Indexes, LVA Indices, a fixed-income index and pricing provider in Chile, and Proveedor Integral de Precios, an index and pricing provider in Latin America, jointly announced that they have signed a marketing agreement to help raise the profile and contribute to the transparency of Latin America's growing fixed-income market.

Under the agreement, the parties will calculate, market and license the Dow Jones LATixx indexes, which launched Wednesday. The new indexes measure corporate and government bonds in major Latin American countries.

The first 10 indexes in the Dow Jones LATixx index series represent the bond markets in Mexico and Chile.

The five Dow Jones LATixx indexes for Mexico have been licensed by Barclays Global Investors to serve as the basis for exchange-traded funds. The ETFs are expected to be available in July.

The partners expect to expand this initiative to include additional fixed-income indexes for markets such as Brazil, Peru, Colombia, Costa Rica, Venezuela and Argentina.

The five indexes for the Mexican fixed-income market measure the performance of specific types of government-issued bonds. The five new indexes for the Chilean fixed-income market include both government and corporate bonds.

The indexes are reviewed on a monthly basis, and daily back-tested historical data is available back to Dec. 31, 2004 for the Mexican indexes and back to Jan. 1, 2001 for the Chilean indexes.

The Dow Jones LATixx Mexico Government UMS index was first published on June 8; the remaining Dow Jones LATixx indexes were first published on June 3.

"The bond market is the primary and most actively used investment vehicle in Latin America. Dow Jones Indexes has teamed up with LVA and PiP, two of the continent's leading fixed-income experts, to create an index family that provides market participants with diversified exposure to this growing and exciting asset class," Michael A. Petronella, president of Dow Jones Indexes, said in a press release.

New York-based Dow Jones Indexes develops, maintains and licenses indexes for use as benchmarks and as the basis of investment products.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.