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MTSNext Launches EuroMTS Covered Bond Indices

MTSNext today announces the launch of the EuroMTS Covered Bond Indices (EMTXc), the first real-time indices for euro-denominated covered bonds from European Union issuers.

The new index family includes an aggregate index, currently composed of 64 bonds, with three maturity range sub-indices and five country indices. The EMTXc indices are based on real time prices from the MTS trading platforms and include the following issues: German Oeffentliche and Hypothekenpfandbriefe, French Obligations Foncières, Spanish Cedulas, Irish ACS and UK bonds covered with mortgages and/or public loans.

These indices all adhere to the same principles of transparency, tradability and independence that are integral to the original EuroMTS Indices and are calculated and published in real time from 9:00 to 17:30 CET with two daily fixings for each index: at 11:00 CET and 16:00 CET

The EMTXc indices extend the EuroMTS Index family and are designed as an investment benchmark while also providing underlying indices for structured products, exchange-traded funds (ETFs) or derivatives.

Hans Diel, Head of Funding of Eurohypo, commented: "We welcome the launch of the EuroMTS Covered Bond Indices which will enhance the transparency of this expanding market, facilitate financial products such as ETFs and encourage access on the part of retail investors. This represents a further step in the development of this asset class which, in turn, will lead to improved liquidity.

Patrick Barbe, Head of European Fixed Income at BNP Paribas Asset Management, commented: “The introduction of the EuroMTS Covered Bond Indices is a distinctly positive development. The indices will provide a reference for accurately measuring the performance of the covered bond market and will inevitably facilitate portfolio management. We look forward to the establishment of instruments referenced to this family of indices which will add to the investment attractions of the covered bond sector."

Additional information on the EuroMTS Indices, including historical index data, is freely distributed via euromtsindex and through a number of market data vendors.