{"id":63731,"date":"2017-06-19T00:55:00","date_gmt":"2017-06-18T22:55:00","guid":{"rendered":"http:\/\/beta.next-finance.net\/news\/solactive-launches-australian-bank-senior-floating-rate-bond-index\/"},"modified":"2017-06-19T00:55:00","modified_gmt":"2017-06-18T22:55:00","slug":"solactive-launches-australian-bank-senior-floating-rate-bond-index","status":"publish","type":"post","link":"http:\/\/beta.next-finance.net\/en\/news\/solactive-launches-australian-bank-senior-floating-rate-bond-index\/","title":{"rendered":"Solactive launches Australian Bank Senior Floating Rate Bond Index"},"content":{"rendered":"

Solactive launches Australian Bank Senior Floating Rate Bond Index – Aimed to be tracked by BetaShares Australian Bank Senior Floating Rate Bond ETF<\/strong> <\/em><\/p>\n

Solactive AG is pleased to announce it has entered for the first time the Asia-Pacific region
\nwith a new index in the fixed-income space, the Solactive Australian Bank Senior Floating
\nRate Bond Index, aimed to be tracked by the BetaShares Australian Bank Senior Floating
\nRate Bond ETF (ASX: QPON).<\/p>\n

The index targets the largest and most liquid floating rate AUDdenominated
\ndebt securities issued by selected Australian banks. The index is composed in
\nsuch a way that at least 80% of the assets are tracking floating rate bonds issued by the four
\nlargest Australian banks, and up to 20% are linked to issues by the large \u2018regional\u2019 banks.
\nQPON is the first ETF in Australia to offer exposure to a diversified portfolio of bank floating
\nrate bonds in one trade on the ASX.<\/p>\n

Floating rate bonds expose investors to variable interest payments tied to a reference
\nbenchmark. The variable coupon feature provides a layer of protection from rising interest
\nrates, as bond yields fluctuate in relation to the benchmark. In the case of Australia, the
\nReserve Bank of Australia has adopted a low interest policy, with rates set at historic lows. In
\nthis context, the index may appeal to fixed-income investors who are foreseeing a potential
\nrate increase in the future. In addition, due to their floating interest rate structure and high
\ncredit quality, these bonds tend to offer an income premium over traditional cash and shortterm
\ndeposit products for only marginally greater interest rate risk and credit exposure.<\/p>\n

Steffen Scheuble, CEO, Solactive, commented: \u201cWe are happy of working together with
\nBetaShares to provide cost-efficient access to Australian banks\u2019 floating rate bonds. The launch
\nof the Solactive Australian Bank Senior Floating Rate Bond Index demonstrates that we are
\ncapable of responding to the needs of an increasingly international customer base and expand
\nour footprint globally.\u201d<\/em><\/p>\n

Alex Vynokur, Managing Director, BetaShares, added: \u201cWe believe QPON has an important role
\nto play in investment portfolios given the current interest rate climate. Demand for the strategy
\nhas been strong in Australia, and, with the strategy paying income of ~2.9% before fees at the
\ntime of writing along with very low historical capital volatility from Australian bank floating
\nrate bonds, we believe that QPON will also receive interest from investors in other geographies
\nsuch as Europe and Asia. We are proud to be continuing to innovate the ETF industry by
\nexpanding the range of investing solutions available.\u201d<\/em><\/p>\n

The index is calculated as a total return index. The bonds included in the index are senior
\nbonds, denominated in AUD and issued by Australian banks. The minimum amount
\noutstanding for inclusion in the index must be of at least AUD 500 million and the time to
\nmaturity of between 1 to 5 years. The index is currently composed of 13 floating rate bonds.<\/p>\n","protected":false},"excerpt":{"rendered":"

Solactive AG is pleased to announce it has entered for the first time the Asia-Pacific region with a new index in the fixed-income space, the Solactive Australian Bank Senior Floating Rate Bond Index, aimed to be tracked by the BetaShares Australian Bank Senior Floating Rate Bond ETF…<\/p>\n","protected":false},"author":20,"featured_media":63729,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[1470],"tags":[1655,1859,1718,1681,1651,1711,1437,1691,2234,1720,1952],"_links":{"self":[{"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/posts\/63731"}],"collection":[{"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/users\/20"}],"replies":[{"embeddable":true,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/comments?post=63731"}],"version-history":[{"count":0,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/posts\/63731\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/media\/63729"}],"wp:attachment":[{"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/media?parent=63731"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/categories?post=63731"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/tags?post=63731"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}