FTSE Russell, the index and data firm, is introducing a country classification process for fixed income. The newly introduced fixed income framework, which is designed to complement the firm’s existing equity country classification process, was developed in consultation with market participants.
The framework introduces a way of calibrating ‘Market Accessibility Levels’ for local currency, fixed-rate government bond markets. Countries tracked by FTSE Russell indexes will be assigned an accessibility level of 0,1 or 2, with 2 representing the highest level
A process-orientated framework used to assess market accessibility for foreign investors will be measured across four market criteria using 17 separate indicators. The new framework is intended to complement the existing equity country classification process.
FTSE Russell says it will publish an inaugural ‘Watch List’ of local fixed income markets being considered for potential reclassification.