In its meeting last Thursday (September 3rd, 2015), the board of directors of the Tel Aviv Stock Exchange (TASE) approved the launch of
the 12th index in the Tel-Bond family of indices – the "Tel-Bond Yields - Shekel" Index. The new index will be launched on November 15, 2015 and will include all
non-linked fixed-interest bonds with a credit rating ranging between (BBB-) and (A), which are included in the Tel-Bond Composite.
The new index is a product of a market needs survey conducted by the TASE's staff in recent months in the Tel-Bond Indices segment. The survey also indicated the need to develop a series of Tel-Bond indices that would be broken down by duration or time to maturity, and development possibilities for such indices will be examined in 2016.
The Tel-Bond-Yields Shekel Index is an index with a credit rating range identical to the one of the existing Tel-Bond-Yields Index (which is solely comprised of index-linked bonds), The "linked" Tel-Bond-Yields Index, which was introduced about 2.5 years ago and was perceived by the market as an innovative product and has become a popular investment instrument among investors. 10 index-tracking financial products have been launched on this index, with the scope of investment in such products totaling approx. ILS 2.5 billion.
Additional characteristics of the Index (as of July 31, 2015) are as follows:
Market cap – approx. ILS 13.5 billion.
Weight cap per series – 6%.
Weight cap per issuer – 20%.
Number of series – 27.
Number of issuers – 22.
Weight of largest issuer (Extell) – 10.9%.
Weight of dominant sector (real estate & construction) – 39.5%.
Yield-to-Maturity – 4%.
Weighted duration – 3.4 years.
