LEHMAN AGGREGATE BOND INDEX

(Redirected from Lehman Aggregate)
The 'Lehman Aggregate Bond Index' is a broad base index often used to represent investment grade bonds being traded in United States. Index funds and exchange-traded funds are available that track this bond index.
Managers may often subdivide the different parts of the Aggregate by maturity or sector for managing individual portfolios. The Municipal section of the index is the only part of the index that cannot be used for this purpose - because municipal debt is issued by so many different entities, the Municipals in the Aggregate are only intended to be representative, and Lehman maintains separate indices for maintaining Municipal-only portfolios.
In August, 2002, Barclays Bank created the iShares Lehman Aggregate Bond Exchange-Traded Fund (Symbol: AGG), to reflect the performance of the index.

Contents

Index characteristics

See also

References

External links

Index characteristics

The Lehman Aggregate Bond Index is a ''market capitalization-weighted'' index, meaning the securities in the index are weighted according to the market size of each bond type. Most U.S. traded investment grade bonds are represented. Municipal bonds, and Treasury Inflation-Protected Securities are excluded, due to tax treatment issues. The index includes Treasury securities, Government agency bonds, Mortgage-backed bonds, Corporate bonds, and a small amount of foreign bonds traded in U.S.
The Lehman Aggregate Bond Index is an intermediate term index. The average maturity as of 2005 is 7.5 years.
Lehman Brothers maintains the Lehman Aggregate Bond Index. Lehman Brothers specializes in bond type securities.

See also

★ Index fund

★ Bond market index

References

★ Richard A. Ferri, ''All About Asset Allocation'', McGraw-Hill, 2006, ISBN 0-07-142958-1

External links

★ Lehman Aggregate Bond Index