Barclays Capital achieves inflation market first with launch of emerging market indices  

Barclays Capital, the investment banking division of Barclays Bank PLC that is affiliated to Absa Capital, today announced the launch of a family of local currency Emerging Market Government Inflation-Linked Bond (“EMGILB”) benchmark indices.

This is the first time that a full family of indices has been available to asset managers and institutional investors looking for a representative benchmark for government inflation-linked debt within developing nations.

They were created by the Barclays Capital Index Products Group and approved by the independent Barclays Capital Inflation-linked Index Committee.

Individual indices track the performance of inflation-linked bonds issued by the sovereign governments of Argentina, Brazil, Chile, Colombia, Mexico, Poland, South Korea and Turkey.

These indices (along with the pre-existing Barclays/BESA South African Inflation-Linked Bond Index) are then utilized to create indices tracking debt within Latin America, Asia and Eastern Europe, Middle East & Africa (EEMEA). 

All of these component indices then roll up to form the Emerging Market Government Inflation-Linked Bond benchmark index. 

Mike Bagguley, Head of Trading at Absa Capital in Johannesburg, said: “The new global EM Government Inflation-linked Bond indices are another step forward in the development of these markets and is testament to the growing demand for exposure to inflation across the globe.”

Waqas Samad, Head of Index Products at Barclays Capital commented: “These new benchmark indices complement and build on our existing family of inflation indices, underscoring Barclays Capital’s commitment to the inflation-linked market and to meeting investors’ needs for diversification in emerging markets.” 

Ralph Segreti, Global Inflation-Linked Product Manager added: “Investors need a reliable benchmark, and as the global leader in inflation-linked trading, products & indices, we were ideally placed to create a market standard.” 
Barclays Capital will also make customized indices available and provide support and analytics for these indices via web based and other e-commerce protocols.  The indices are calculated daily and use standard settlements and market calendars most appropriate for international investors. 

Complete index rules are available in Barclays Capital’s new Inflation-linked Emerging Markets Index Guide.


Note to the editor:

About Absa Capital
Absa Capital, a division of Absa Bank Limited (Absa) and affiliated to Barclays Capital, is a leading South African investment bank with global reach, offering clients financing, risk management and advisory solutions in a wide range of currencies and structures across the globe.

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