
Episode #2
Avoiding debtor bias in a global sovereign bond index
In this episode of FTSE Russell Index Ideas, Abhi Desai, Senior Analyst, Fixed Income Custom Solutions at FTSE Russell and Olivier Genin, Deputy Head Investment and Product Strategy, Head of Fixed Income and Responsible Investing Product Strategy, Amundi ETF and Indexing, discuss the design and use cases of FTSE GDP-Weighted World Government Bond index (WGBI), in which constituent country weights are determined by economic footprint, rather than the market value of debt in issue. Chapters (00:01:39) - What is the GDP-Adjusted FTSE World Government Bond Index (WGBI)? (00:03:57) - GDP weighting explained: A new approach to sovereign bond allocation (00:05:36) - How GDP weighting changes country exposure and diversification (00:08:10) - FTSE WGBI vs. GDP-adjusted WGBI (00:11:12) - Methodology, performance and the future of GDP-based index investing

