Markit, a leading, global financial information services company, today announced the launch of the Markit iBoxx SGD, a family of bond indices designed to track the performance of sovereign and corporate debt denominated in Singapore dollars (SGD). These are the first bond indices to include comprehensive and detailed coverage of the SGD corporate bond market.
The launch of the Markit iBoxx SGD indices comes at a time when Singapore’s positive economic outlook and high credit rating are attracting a growing investor base to its local debt markets. The SGD corporate bond market has grown by 130% over the past ten years to SG$113 billion in 2012. Last year, new issuance reached SG$31 billion.
Melvin Lee, senior vice-president at Fullerton Fund Management Company Ltd, said: “The new Markit iBoxx SGD index provides a useful reference for the SGD credit market, which had previously lacked a pure SGD corporate bond index. I am confident that this latest offering from Markit will be well received by SGD bond investors.”
Armins Rusis, managing director and global co-head of Information at Markit, said: “These new indices will aid price discovery in the fast-growing SGD bond market and provide investors with an independent reference tool to assess returns. It follows the addition of SGD bonds to our bond pricing service last year and highlights our commitment to provide innovative information and solutions for customers active in the Asia-Pacific region.”
The Markit iBoxx SGD index family currently includes 79 sub-indices covering sovereign, sub-sovereign and corporate debt issuers across 29 sectors and industries, with a combined total debt of SG$150 billion. Approximately 64% of the non-sovereign debt included in these indices carries investment grade ratings and 35% is not rated.
Pricing is provided by Markit's Bond Pricing service, which uses multiple observable price sources and was expanded last year to include SGD bonds.
Markit has five offices in the Asia-Pacific region - Hong Kong, New Delhi, Singapore, Sydney and Tokyo. The company employs 550+ staff in the region across product management, customer service, operations and infrastructure.