Lehman Aggregate Bond Index

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Definition of 'Lehman Aggregate Bond Index'

The Lehman Aggregate Bond Index is a broad-based index of investment-grade U.S. bonds. It is owned and maintained by S&P Dow Jones Indices, a subsidiary of S&P Global. The index is composed of investment-grade U.S. bonds issued by U.S. government agencies, U.S. corporations, and U.S. municipalities. The index is weighted by market capitalization, and it is rebalanced monthly.

The Lehman Aggregate Bond Index is a widely used benchmark for the U.S. bond market. It is used by investors, traders, and analysts to track the performance of the U.S. bond market. The index is also used as a reference point for pricing other bonds.

The Lehman Aggregate Bond Index has been around for over 30 years. It is one of the oldest and most respected bond indices in the world. The index has a long history of providing accurate and reliable performance data.

The Lehman Aggregate Bond Index is a valuable tool for investors who want to track the performance of the U.S. bond market. The index can be used to compare the performance of different bond investments, and it can also be used to benchmark the performance of a portfolio of bonds.

The Lehman Aggregate Bond Index is a good choice for investors who are looking for a broad-based exposure to the U.S. bond market. The index is diversified across different sectors of the bond market, and it is also weighted by market capitalization. This means that the index is not biased towards any particular sector or issuer.

The Lehman Aggregate Bond Index is a liquid index. There is a large market for Lehman Aggregate Bond Index-linked products, such as exchange-traded funds (ETFs) and notes. This liquidity makes it easy for investors to buy and sell Lehman Aggregate Bond Index-linked products.

The Lehman Aggregate Bond Index is a transparent index. The index methodology is publicly available, and the index is rebalanced on a monthly basis. This transparency makes it easy for investors to understand how the index is constructed and how it is managed.

The Lehman Aggregate Bond Index is a well-respected index. It is used by a wide range of investors, traders, and analysts. The index has a long history of providing accurate and reliable performance data.

Overall, the Lehman Aggregate Bond Index is a valuable tool for investors who want to track the performance of the U.S. bond market. The index is diversified, liquid, transparent, and well-respected.

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