RBC Capital Markets has introduced the RBC Total Return U.S. Treasury (TRUST) Index, a benchmark index for investors in U.S. Treasuries with bonds rebalanced on a daily basis.
The new index is the only U.S. Treasury Index that is updated daily, while other indices are rebalanced on a monthly or quarterly basis, RBC Capital Markets said Thursday.
The results provide portfolio managers, mutual fund managers and investors around the world with a comprehensive, real-time and accurate view of the U.S. Treasury.
Additionally, the index has nine different sub-indices and is the only index that covers all points across the yield curve, with issues entering on auction day and exiting daily.
“By rebalancing daily, the RBC Index differs vastly from existing indices that are rebalanced once per month, and provides a much more accurate and real-time performance measure across the full spectrum of U.S.-issued government bonds,” said Ira Jersey, RBC Capital Markets’ head of U.S. Interest Rate Strategy.
“The index will be of great benefit to institutional money managers across the globe who track U.S. Treasuries, as it allows them to update their portfolios daily, and is also very appealing from a research perspective.”
The new index is another example of the investment bank’s growing U.S. dollar capabilities, RBC Capital Markets said.
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