Methodology Change | Solactive Australian Bank Senior Floating Rate Bond Index | Effective Date 2022-11-18

Today (November 8th, 2022) Solactive announces the following changes to the methodology of the following Index (‘Affected Index’):




Solactive Australian Bank Senior Floating Rate Bond Index



Rationale for Methodology Change

The Affected Index provides exposure to the largest and most liquid floating rate debt securities issued by selected Australian banks. The index is comprised of investment grade floating rate debt securities denominated in AUD and calculated as a Total Return Index.

With increased activity of major banks towards the end of last year/start of this year in issuing new Floating Rate Notes (FRNs), such notes shall be eligible for inclusion in the index as soon as they are issued. Previously, the inclusion of these securities in the index was dependent on whether they were on the Reserve Bank of Australia’s (RBA) list of securities eligible for domestic market operations. Such change would increase the sensitivity of the index with regard to new issuances and therefore would support the index objective.

Change to the Index Guideline

The following Methodology change will be implemented in the following point of the Index Guideline :


From (old version):

  1. c) Securities must be eligible for use in the Reserve Bank of Australia’s (RBA) domestic market operations. * The RBA’s minimum eligibility criteria and the list of eligible securities can be found on the following URL: http://www.rba.gov.au/mkt-operations/resources/tech-notes/eligiblesecurities.html

To (new version):

Removal of point c) in section 2.1.

Defined terms used in this announcement, but not defined herein, have the meaning assigned to them in the respective index guideline of the Affected Index. The amended version of the index guideline will be available on the effective date.