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NASD Establishes Corporate Bond Inde Program

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The National Association of Securities Dealers is trying to make corporate bonds easier for consumers to understand by setting up a new bond index program.[@@]

The NASD, Washington, is working with Bloomberg Inc., New York, to promote a NASD-Bloomberg Active Investment US Grade Corporate Bond Index and a NASD-Bloomberg Active High Yield US Corporate Bond Index.

The indices are based solely on transaction prices of actively traded bonds gathered by the NASD’s TRACE trade reporting system, the NASD says.

The NASD will compute total return, price, yield and volume for each index each day, and it also will supply lists of the 10 most active bonds, the top 10 gainers and the top 10 losers, the NASD says.