Lehman Aggregate Bond Index

Lehman Aggregate Bond Index

What Does Lehman Aggregate Bond Index Mean?

An index used by bond funds as a benchmark to measure their relative performance. The index includes government securities, mortgagebacked securities, asset-backed securities, and corporate securities. The maturities of the bonds in the index are more than one year.

Investopedia explains Lehman Aggregate Bond Index

The index, which is constructed by Lehman Brothers, is considered by investors to be the best total market bond tracking index. Along with the aggregate index, Lehman has bond indexes tailored to European and Asian investors. This index cannot be purchased, but it is tracked by bond index funds; there are also exchange-traded funds (ETFs) that track the index. The Lehman Aggregate Bond Index trades on an exchange just like a stock.

Related Terms:
• Bond
• Corporate Bond
• Index
• Index Fund
• Mortgage-Backed Securities—MBS