Bloomberg Announces Methodology Changes to its AusBond Index Family

Sydney, New York, July 20, 2016 – Bloomberg today announced several methodology changes to its AusBond Index family. These changes arose out of our most recent Annual AusBond Index Advisory Council of major Australian fixed income market participants and ensure the indices remain representative of the markets they measure. These changes will go into effect in the October 2016 projected universe and will therefore be effective in the November returns universe.

The Bloomberg AusBond Index family will see the following modifications:

1) The only types of securitised instruments that will qualify for inclusion in the AusBond Indices are those backed by residential mortgages and covered bonds. Commercial mortgage-backed securities and asset-backed securities will be excluded.

2) Maturity dates, rather than call dates, will be used to qualify callable securities for maturity-banded subindices. Securities with call features (such as a one-time call feature; discrete call schedule; or an anytime-call feature) will be handled in a consistent manner, namely that they will remain in the indices until one month prior to their actual maturity unless the call option is exercised.

3) Expected ratings and comparable issue ratings may be used to qualify securities for inclusion in the AusBond and NZBond Indices where a final rating is not yet available. This enables new issues to be added to the projected universe as soon as sufficient information is available to determine its probable investment-grade rating.

For more information on these changes please visit bloombergindices.com/ausbond or {INDEX<GO>} on the Bloomberg Professional service. AusBond Month-in-Review reports, which provide analysis of the Australian and New Zealand fixed income markets in the context of the global markets, are published online on the first of each month and available on the terminal at {NI BLPBIDXAB<GO> }. AusBond Index subscribers may also access the mid-month coupon change report and end-of-month report on the terminal at {NI BLPBIDXAB <GO>}.

Bloomberg provides an independent, transparent approach to indexing for customers across the globe. For more information on changes to Bloomberg’s fixed income indices and the planned implementation dates, please visit bloombergindices.com/fixed-income.

About Bloomberg
Bloomberg, the global business and financial information and news leader, gives influential decision makers a critical edge by connecting them to a dynamic network of information, people and ideas. The company’s strength – delivering data, news and analytics through innovative technology, quickly and accurately – is at the core of the Bloomberg Professional service, which provides real time financial information to approximately 325,000 subscribers globally. For more information, visit www.bloomberg.com or request a demo.

Media Contacts

• APAC, Belina Tan, +65-6231-3637, belina.tan@bloomberg.net
• U.S., Jill Watanabe, +212-617-1610, jwatanabe11@bloomberg.net