Avoiding debtor bias in a global sovereign bond index | FTSE Russell Index Ideas

In this episode of FTSE Russell Index Ideas, Abhi Desai, senior analyst, fixed income custom solutions at FTSE Russell and Olivier Genin, deputy head of markets and product strategy at Amundi, discuss the design and use cases of FTSE GDP-weighted World Government Bond index, in which constituent country weights are determined by economic footprint, rather than the market value of debt in issue. Our FTSE Russell Index Ideas podcast series brings you insights into how our indices and benchmarks are built and why. We explore index ideas that can help you address real-world investment challenges. 01:39 What is the GDP-Adjusted FTSE World Government Bond Index (WGBI)? 03:57 GDP weighting explained: A new approach to sovereign bond allocation 05:36 How GDP weighting changes country exposure and diversification 08:10 FTSE WGBI vs. GDP-adjusted WGBI 11:12 Methodology, performance and the future of GDP-based index investing Watch the full series here: https://www.youtube.com/playlist?list=PLs_YjOh3pCYiJlgj7gxsEqG5l84Cyo1Sz To listen on your preferred podcast platform go to https://pod.link/1824483218 Subscribe now for more videos like this one @LSEGplc If you have any questions about this episode, financial markets or the economy, please leave us a comment or email [email protected]. Follow FTSE Russell: https://x.com/ftserussell https://www.linkedin.com/company/ftse/ LSEG (London Stock Exchange Group) is a diversified international markets infrastructure business —earning our clients’ trust for over 300 years. That legacy of customer-focused excellence ensures that you can rely on our expertise in capital formation, intellectual property and risk and balance sheet management. As global leaders in financial indexing, benchmarking and analytic services, we offer unrivalled access to international capital markets. Our high-performance technology solutions enable companies worldwide to access funds for growth and development. And with our Data & Analytics, Capital Markets and Post Trade divisions, we provide a comprehensive, integrated suite of trusted financial market infrastructure services that help our customers pursue—and achieve—their ambitions. That’s how we make a difference— ensuring people can meet their potential—worldwide. Follow us on LinkedIn (linkedin.com/company/london-stock-exchange-group) and Twitter (@LSEGplc).