Indexing Across Borders
Jamie Nicholson-Leener, head of Latin American corporate credit research at Credit Suisse, explains why her investment bank developed its Latin America Corporate Bond Index.
What is the Latin America Corporate Bond Index?The Credit
Suisse Latin America Corporate Bond Index (LACI) is the first
performance benchmark devoted exclusively to non-sovereign
fixed income issues from Latin America. We launched the index
in March, but the pricing on the issues included in the index
dates back to November 2001. The current market value of bonds
in the index is approximately $65 billion and number 177
separate issues. Although two thirds of the index is made up of
issues from Latin American corporates, it also includes issues
from quasi-sovereign entities such as the state-owned Brazilian
bank, Banco do Brasil, and Chilean state copper company
Codelco. Mexico's national oil company, Petróleos
Mexicanos (Pemex), an active quasi-sovereign issuer, accounts
for 23% of the index in terms of market value. The index also
includes supranationals, such as Venezuela's Andean Development
Corporation. The index is further broken down by credit
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