News: CROBIStr - New bond index of the Zagreb Stock Exchange

11/25/2011 15:47
As of December 2, 2011, the Zagreb Stock Exchange is introducing a new bond index CROBIStr (CROBIS Total Return Index).
The new index will have the same composition as the existing CROBIS bond index, but unlike it, it will also include accrued or paid interest. The paid interest will be reinvested in the bonds in the index composition according to their weights, so the new CROBIStr index will measure the total return that the investor would have gained if he had invested in the bond portfolio in equal proportions as the weights of individual bonds in the index. 
The index will be calculated once a day after the end of the trade, and the volume weighted average price  that will include all types of transactions (regular, block and OTC) will be used when calculating the index.
The CROBIStr index is a continuation of the Zagreb Stock Exchange's efforts to make trading in debt securities as transparent as possible and to enable investors to accurately monitor the movement of bond prices.
The new index is primarily aimed at professional investors as one of the tools that will facilitate the valuation of pension and investment fund returns and enable simpler and clearer monitoring of trends in the bond bond market.