Bonds

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What are bond indexes?

The indexes are statistical measures of how certain groups of bonds are performing. There are many different indexes, which track different sectors of the bond market. The most commonly known include the following:

  • Lehman Brothers Aggregate Bond Index — used by the majority of investors to benchmark the performance of bonds and bond funds. In addition to the Aggregate Bond Index, Lehman has multiple other bond indexes that track different sectors of the bond markets.
  • Dow Jones Corporate Bond Index — measures the returns of high-grade, U.S. corporate bonds.