But finding a suitable benchmark requires some testing and learning. The index query tools enable users to use a rules-based approach to find or create an index that meets their needs. Once users have identified the best custom approach for their investment strategy, the Bloomberg Indices team steps in to make it a reality.
IQ indices can be used for internal research purposes. The function supports hundreds of public indices that can be used as a base for customization and history is available at an aggregate level (back to 2005). Clients can use several different fields, like Index Rating, Maturity, Sector, etc., to customize indices. Other flexible options include the ability to define and apply your own parameters, for instance, a restricted country or ticker list. Once the custom index has been saved, it can be shared with others on the team and selected as a universe on PORT <GO> and PREP <GO>.
With Index Query, users satisfy their idea generation, design evaluation and backtesting, administration and broad distribution needs in one seamless interface. In addition to Bloomberg’s offerings, users get everything that comes with the Bloomberg name — such as widespread distribution and reach.
Add to that, Bloomberg maintains expert knowledge in the fixed income sector. This broad experience helps in designing fixed income indices across different industries, securities and markets.
What’s more, Bloomberg employs scalable technology and infrastructure that ensure users receive correct and timely information. To maintain this data integrity, Bloomberg calculates and administers the custom benchmarks.
