BNP Paribas launched its first index on triple-A rated, U.S. dollar-denominated covered bonds from issuers globally.   The BNP Paribas Covered Bonds Index is a market-cap weighted index of all covered bonds, which are U.S. dollar-denominated and triple-A rated. The index is rebalanced monthly to incorporate new issues and to remove those no longer eligible.   "While euro-denominated covered bonds are a well-established financing and investment instrument in Europe, a growing number of non-US issuers have now issued US Dollar-denominated covered bonds," said Kip Testwuide, head of fixed-income origination and distribution in the  Americas. "The U.S. investor base is growing even before legislation governing covered bonds by U.S. issuers is finalized."   The U.S. covered bond market has grown rapidly over the past few years, increasing to over $44 billion today from under $10 billion of outstanding notional in 2010 .    The BNP Paribas Covered Bond Index was developed in response to demand from clients who wanted a tool to track the asset class and compare its returns to other investment alternatives. This index can also be used to manage portfolios utilizing instruments such as total return swaps.

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