FTSE Russell Introduces FTSE TMX Canada NVCC Bond Index


    FTSE Russell has launched the FTSE TMX Canada NVCC Bond Index, designed for Canadian investors to specifically track the issuance and performance of Non-Viable Contingent Capital (NVCC) securities. NVCC securities were introduced in Canada two years ago as an instrument to help Canadian banks strengthen their capital ratios to meet requirements of the Basel III Accord. These instruments contain a protective mechanism converting them into common shares if a bank’s viability is threatened. This new segment of the Canadian market has grown substantially since the inception of the index on December 31, 2014, less than two years ago. As of November 30, 2016, the index had 14 issues from five issuers and a market capitalization of approximately $15.6 billion. “This NVCC area is material and important enough to Canadian investors to warrant an index to specifically track and measure it, says Marina Mets, director at FTSE Russell Canada. “We believe our new index will enable our clients to better track and understand the nuances of what is clearly an evolving asset class in Canada.”