Deutsche Bank has launched a new emerging markets bond index, the Emerging Markets Liquid Eurobond Euro Index (EMLE Euro Index).
Deutsche say that EMLE is the first index to track emerging markets from a European investor perspective, with a reduced focus on Latin America. The new index will offer a total of 21 bonds, with currency hedged returns. The target maturity is set for 9 years. The average credit rating is just under Ba2/BB, with the minimum rating at B-/B3 and the maximum A-/A3.
The bank also said that the index will have offer investors a comparable level of sophistication and comfort as benchmark equity indices, thanks to methodology that it claims extends beyond simple market capitalisation.
Additionally, Deutsche claims that the low historic correlation to equities and government bonds makes EMLE a good diversification instrument.
By Geoffrey Ho
Most respondents in this week's Pensions Buzz do not think businesses should be able suspend AE contributions if in financial distress.
Former BHS owner Dominic Chappell has lost the appeal against his section 72 conviction and sentence for failing to hand over information to The Pensions Regulator (TPR).
This week's top stories include Marsh and McLennan Companies agreeing to buy JLT, and the home secretary calling for AE to be scrapped in a no-deal Brexit scenario.
Lesley Titcomb says the watchdog wants closer interactions with pension funds to spot problems sooner and act before having to use its more stringent powers