Bloomberg Launches Tradeable Trackers

Bloomberg announced the impending launch of Tradeable Trackers, a suite of tradeable indices based on the Bloomberg Fixed Income Indices (“Bloomberg Indices”). Unlike traditional end-of-day indices, these rules-based indices have intraday pricing available, minimizing tracking error while enhancing transparency and price discovery. The Tradeable Trackers will also support innovation in the fixed income derivatives market via the development of standardized and listed products. Tradeable Trackers will provide market participants with the ability to hedge their portfolios with capital efficiency while deepening the liquidity in the secondary fixed income markets. The first Tradeable Tracker index, due to be available in Q4 2022, will consist of 200 liquid bonds and will measure the performance of the Bloomberg US Corporate Bond Index as well as related spreads. Pricing will be provided by BVAL, Bloomberg’s evaluated pricing service, using IBVAL, BVAL’s intraday pricing product, which has been enhanced to bridge the gap between trading and index pricing.