December 12, 2024

The FTSE World Government Bond Index (WGBI): A global standard for the sovereign debt markets

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  1. Overview
  2. Research and Insights

 Key takeaways: 

  • The World Government Bond Index (WGBI) was launched in 1986 by Salomon Brothers and has grown from nine to 24 fixed income markets
  • The market value of the bonds in the index has risen from $1trn to $30trn
  • In 2019, FTSE Russell introduced a country classification framework to assess markets’ eligibility for index inclusion

Points of differentiation: 

  • WGBI uses an objective, transparent framework for index inclusion
  • WGBI offshoots cover climate, ESG, debt capacity
  • The index range is backed by a comprehensive range of fixed income analytics

What does our research mean for investors?  

The research will help readers become familiar with the history, design principles and features of the FTSE WGBI, which serves as a global standard for investors in the sovereign debt markets, helping them manage and compare the performances of their portfolios.

  • The FTSE World Government Bond Index (WGBI) is the recognised leading benchmark for global treasury exposure followed by major fund managers and large asset owners around the world. The FTSE WGBI measures the performance of fixed-rate, local currency, investment-grade sovereign bonds from over 20 countries, denominated in a variety of currencies, and has more than 30 years of history available.

    The WGBI is a broad benchmark providing coverage of the global sovereign fixed income market. Modular and comprehensive in design, sub-indices are available by country, currency, maturity and rating.

    The FTSE WGBI provides the foundation for innovative product variations for alternative investment strategies, including sustainable investment and smart beta overlays, for more information please click here.

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