NEWS: Indiaà Currently executing major capital market reforms to secure the inclusion of its government bonds within the prestigious Bloomberg Global Aggregate Bond Index.
About
- The Bloomberg Global Aggregate Bond Indexà Flagship international fixed-income benchmark that tracks the performance of investment-grade, fixed-rate bonds globally.
- Acts as the definitive global tracking ledger for the multi-trillion-dollar sovereign and corporate debt markets.
- Developed by Bloomberg Index Services Limited.
OBJECTIVE
- To provide institutional fund managers with a highly transparent, multicurrency, and comprehensive macro-measurement tool.
- Serves as a passive investment blueprint for Exchange-Traded Funds (ETFs) and index funds
- Simultaneously functions as a rigorous performance scorecard for active global asset managers.
Key Features
- It is one of the world’s largest bond benchmarks, covering sovereign and supranational debt across multiple currencies.
- Widely tracked by sovereign wealth funds, pension funds, insurers, and global asset managers.
- Target Asset Base (FAR Bonds)àIndia’s inclusion is based on FAR-designated Government Securities (G-Secs).
- Under the Fully Accessible Route (2020), FPIs, NRIs, and OCIs can invest in these bonds without investment caps.
- Estimated Weight and Capital Inflowsà India could receive a 7–1.0% index weight= May attract $20–25 billion in passive foreign investment into Indian government bonds.