3.4.3.3. Bond Indexes
In addition to yield curves, some publications offer bond indexes as a measure of value. A bond index measures changes in the yields of a group of securities that are similar as to issue size, credit rating, sector, geography, or maturity date. Barclays Capital Municipal Bond Index is an index of 46,000 fixed-rate investment-grade bonds.
The Bond Buyer lists four indexes:
1. 20-Bond General Obligation Index—20 bonds with an average AA rating by S&P that have a 20-year maturity
2. 11-Bond GO Index—11 bonds from the 20-year index that average a AA+ ratin