Closing Comments on Section IV

Indexes are one of the most widely used tools for analytics in all security markets. In the corporate debt markets, this is true, too. However, the corporate debt market does not have a single, dominant index such as the S&P 500 or the Nikkei 100 in the equity markets.

Virtually all of the indexes that are widely used in the corporate debt markets are run by investment banks. You must be aware of the selection rules and policies of the ones you use so that you understand their differences, strengths, and shortcomings. These benchmarks can be central to driving much of the macroanalysis that you are likely to do on the market and the analytics that you will likely perform on your portfolios and trading positions. ...

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