Markit Iboxx EUR Liquid Indices Independent, Objective and Transparent Coverage and Insight Across All Asset Classes

Markit iBoxx EUR Liquid Indices Independent, objective and transparent coverage and insight across all asset classes

Markit iBoxx Liquid Indices are designed to $1 Trillion provide a basis for financial products, such OTC value linked to Markit Indices as exchange-traded funds. $47 Billion in ETFs with Markit Fixed Income They include a smaller number of larger, more liquid bonds, and benefit from the same high quality pricing used in the rest of the bond universe. 8,000 bonds priced daily by In addition to standard liquid indices, bespoke liquid indices may be added to 10 contributing banks reflect specific investment strategies. 100+ Index structure licensed banks globally

Sovereigns Sub-sovereigns Corporates

Overall AAA Agencies / Supranationals Overall Clients Extra short Financials Short Non-financials Medium Rating Investment banks Long Sectors Asset managers Capped maturities Hedge funds Insurance companies Inclusion criteria

Bond types Eligible: Fixed coupon, step-ups, event-driven bonds, financial subordinated debt More information Excluded: Zero coupon, odd coupon bonds and other callable bonds

Minimum time to maturity Sovereigns: 1.25 years For more information on Markit indices, including access to index Others: 1.5 years constituent data or to license any Amount outstanding Sovereigns: € 2 bn index for use as the basis of a ﬁ nancial Sub-sovereigns: € 1 bn product, please contact us at [email protected], visit our website Corporates: € 750 m at markit.com/indices or call one of Maximum age Sovereigns: 4 years our regional ofﬁ ces: Others: 3 years London +44 20 7260 2000 Max # bonds per issuer Sovereigns: Index specific New York +1 917 441 6658 Others: one Dallas +1 972 560 4420 Rating Euro zone sovereigns: The average long-term local currency sovereign debt rating of the country needs to be investment grade, Individual bonds Sydney +61 2 8076 1111 do not require a rating. Tokyo +81 3 6402 0130 Other debt: All bonds need to have an average rating of investment grade. Ratings from Fitch Ratings, Moody’s Investor Service and Standard & Poor’s Singapore +65 6922 4200 Rating Services are considered. If more than one agency provides a rating, Frankfurt +49 69 299 868 140 the average rating is attached to the bond. Amsterdam +31 20 502 5800

markit.com Markit iBoxx EUR Liquid Indices

Index details

Pricing sources Barclays Capital, BNP Paribas, Commerzbank, Deutsche Bank, Goldman Sachs, HSBC, J.P. Morgan, Morgan Stanley, Royal Bank of Scotland, and UBS.

Calculation frequency Once per minute

Calculation hours 9.00 to 17:15 CET

Rebalancing Quarterly on the last day of February, May, August, and November.

Base date 31 December 1998.

Weighting Market value Sovereign capped indices: each country is capped at 20% Weights of Financials and Non-financials in theMarkit iBoxx € Liquid Corporates Index according to share of the broad Markit iBoxx € Corporates Index

Construction Markit iBoxx Indices multi-dealer pricing contributions and rigorous data checks provide the clearest view of the market.

Raw quotes Checking, consolidating and parsing Individual checks

Internet

Vendors Index calculation FTP

Research & design Quality control Distribution Index rules Manage rebalancing process Receive daily price data Index and data publication Market research Index research and previews Price cleaning and control Feeds to vendors documentation Custom index development Price consolidation Vendor management Index calculation methodology Daily control of Quality reporting and control constituent lists Data procurement Index and analytics Client services calculation Prototyping and testing Reference database control Challenge process Project management