The index will be tracked by UC AXI Global CoCo Bonds UCITS ETF, the first global coco ETF launched by Axiom AI and pan-European bank UniCredit.<\/strong><\/p>\nLaunched in July 2018, the index is independently valued and published by Solactive.<\/p>\n
Essentially, Contingent Convertible bonds (Additional Tier 1 and Restricted Tier 1) are new subordinated debt format eligible for regulatory capital under Basel 3 and Solvency 2.<\/p>\n
They contain characteristics of both bonds and bank equities as they are debt instruments with a fixed-to-float coupon rate, which can, under predetermined criteria, be turned into regular if the capital of a financial institution falls below a pre-specified trigger level.<\/p>\n
In a low interest rate environment and with the search for yields, CoCo bonds appear to be a segment capable of generating particularly attractive returns within the bond universe (SOLAXICC has a yield to maturity of 8.41%1) making them an alternative investment opportunity to traditional fixed-income asset classes.<\/strong><\/p>\nThe Solactive AXI Liquid Contingent Capital Global Market TR Index marks the first index to provide a currency hedged market-weighted exposure to the global CoCo Bond market.<\/strong><\/p>\nIt includes only issuers with an investment grade rating on senior unsecured issuances and EUR and USD denominated bonds.<\/strong><\/p>\nWith \u20ac141 bn market capitalization, it is the largest CoCo index in the industry and the most diversified one by the number of constituents (123 bonds).<\/p>\n
These factors render the Solactive Axiom Liquid Contingent Capital Global Market Index, the most scalable and liquid support index for a Global CoCo bonds ETF.<\/p>\n
Timo Pfeiffer, Head of Research at Solactive, commented: <\/strong>\u201dAs a bridge between bonds and equity, contingent convertible bonds are an attractive vehicle for investors, giving exposure to the advantages of both financial instruments, while keeping a low bond-like risk profile. It was a pleasure to work with Axiom AI on this release, which opens up a new and exciting field for contemporary investors.\u201d<\/p>\nDavid Benamou, Founder and CIO of Axiom AI, said:<\/strong> \u201cWe are delighted to have worked with Solactive who has proved to be a flexible, proactive and efficient partner. This tailored index allows investors to get a market-weighted exposure to the liquid Coco bonds universe, an innovation on the market. Driven by long-term changes in the regulatory environment, leading to the emergence of new capital instruments and helping improve the quality of issuers, CoCo bonds are an essential segment in a diversified bond allocation.\u201d<\/p>\nLaurent Dupeyron, Managing Director at UniCredit, said:<\/strong> \u201cToday\u2019s announcement is a major development for investors who can now gain market-weighted exposure to the CoCo universe in an easy and cost-effective manner, while still benefiting from a UCITS structure. With this launch, we are proving once again that we can respond flexibly to market developments and the demands of our clients.\u201d<\/p>\nQuelle: ETFWorld<\/p>\n","protected":false},"excerpt":{"rendered":"
Solactive and Axiom AI announce the launch of the Solactive AXI Liquid Contingent Capital Global Market TR Index (SOLAXICC), a tailored index for investors that seek broad access to a universe of liquid contingent convertible bonds (CoCos)…..<\/p>\n","protected":false},"author":1,"featured_media":15245,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"telegram_tosend":false,"telegram_tosend_message":"","telegram_tosend_target":0,"footnotes":"","_wpscp_schedule_draft_date":"","_wpscp_schedule_republish_date":"","_wpscppro_advance_schedule":false,"_wpscppro_advance_schedule_date":"","_wpscppro_dont_share_socialmedia":false,"_wpscppro_custom_social_share_image":0,"_facebook_share_type":"","_twitter_share_type":"","_linkedin_share_type":"","_pinterest_share_type":"","_linkedin_share_type_page":"","_instagram_share_type":"","_medium_share_type":"","_threads_share_type":"","_google_business_share_type":"","_selected_social_profile":[],"_wpsp_enable_custom_social_template":false,"_wpsp_social_scheduling":{"enabled":false,"datetime":null,"platforms":[],"status":"template_only","dateOption":"today","timeOption":"now","customDays":"","customHours":"","customDate":"","customTime":"","schedulingType":"absolute"},"_wpsp_active_default_template":true},"categories":[51],"tags":[154,189],"class_list":["post-16253","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-indices-en","tag-etf-solactive","tag-solactive-index"],"blocksy_meta":{"styles_descriptor":{"styles":{"desktop":"","tablet":"","mobile":""},"google_fonts":[],"version":6}},"_links":{"self":[{"href":"https:\/\/www.etfworld.com\/fr\/wp-json\/wp\/v2\/posts\/16253","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.etfworld.com\/fr\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.etfworld.com\/fr\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.etfworld.com\/fr\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.etfworld.com\/fr\/wp-json\/wp\/v2\/comments?post=16253"}],"version-history":[{"count":0,"href":"https:\/\/www.etfworld.com\/fr\/wp-json\/wp\/v2\/posts\/16253\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.etfworld.com\/fr\/wp-json\/wp\/v2\/media\/15245"}],"wp:attachment":[{"href":"https:\/\/www.etfworld.com\/fr\/wp-json\/wp\/v2\/media?parent=16253"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.etfworld.com\/fr\/wp-json\/wp\/v2\/categories?post=16253"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.etfworld.com\/fr\/wp-json\/wp\/v2\/tags?post=16253"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}