The Swiss Bond Index (SBI) is a bond index which tracks fixed-rate, investment-grade

obligations An obligation is a course of action that someone is required to take, whether legal or moral. Obligations are constraints; they limit freedom. People who are under obligations may choose to freely act under obligations. Obligation exists when the ...

emitted in

Swiss Francs The Swiss franc is the currency and legal tender of Switzerland and Liechtenstein. It is also legal tender in the Italian exclave of Campione d'Italia which is surrounded by Swiss territory. The Swiss National Bank (SNB) issues banknotes and the f ...

, the currency of the

Swiss Confederation ; rm, citad federala, links=no). Swiss law does not designate a ''capital'' as such, but the federal parliament and government are installed in Bern, while other federal institutions, such as the federal courts, are in other cities (Bellinzon ...

. The index is calculated by

SIX Swiss Exchange SIX Swiss Exchange (formerly SWX Swiss Exchange), based in Zurich, is Switzerland's principal stock exchange (the other being Berne eXchange). SIX Swiss Exchange also trades other securities such as Swiss government bonds and derivatives such as ...

. It includes all the bonds emitted in CHF that meet inclusion criteria on maturity, issue size and rating. The SBI and its subindices are notably used in investment portfolios such as exchange-traded funds (ETFs) that track the CHF bond market. The SBI was introduced on 1 January 2007, with a baseline value of 100 points as of this date. It peaked above 146 in the Summer of 2019, before breaking its previous drawdown record, having lost more than 16% in June 2022 during the

2021–2022 inflation surge The 2021–2022 inflation surge is the higher-than-average economic inflation throughout much of the world that began in early 2021. It has been attributed to the 2021 global supply chain crisis caused by the COVID-19 pandemic, and unexpected ...

. In 2020, four SBI sub-indices, along with other SIX indices, were endorsed under the EU Benchmarks Regulation and are registered in ESMA, which means that they can be used as an underlying for financial products sold in the EU.

Constituents

The index contains all bonds that fulfill the following criteria: * The issue size must be at least 100,000,000 CHF. * The coupon must be fixed, i.e., bonds with variable rates are not accepted. * The term to maturity must be of at least one year, as debt below one year is usually classified by the financial community as

money market The money market is a component of the economy that provides short-term funds. The money market deals in short-term loans, generally for a period of a year or less. As short-term securities became a commodity, the money market became a compon ...

. * The composite rating must be at the minimum BBB, the maximum being AAA. To determine the rating, several rating agencies are considered. If several agencies rate a bond, the rating must exceed BBB or its equivalent for all agencies.

Subindices

The SBI is also subdivided into subindices that cover various composite ratings, various maturities as well as various kinds of issuers, in particular: Domestic Government (Swiss Confederation, rated AAA), Domestic Non-Government, Foreign Government, Foreign Corporate, Foreign Supranational. The SBI and its subindices exist as total-return indices as well as price indices.

Historical values

These are the historical values of the complete index (SBI AAA-BBB Total Return).

References

{{reflist Bond market indices