The lack of liquidity and transparency triggered by the credit crunch has spurred growth in demand for fixed income indices by investors. The need and demand for additional transparency and liquidity in a market where much trading is done over the counter has prompted an expansion in the number of providers – and types – of fixed income indices.

“There has been a big move by investors since the crisis started towards trading and investing in indices because they offer transparency, liquidity and are an efficient way for investors to get exposure to benchmark fixed income assets,” says Vincent Berard, deputy European head of interest rates and FX structuring at BNP Paribas.