Lehman Aggregate Bond Index (redirected from Lehman Aggregate Index)

Lehman Aggregate Bond Index

An index used by bond funds as a benchmark to measure their relative performance. The index comprises government securities, mortgage-backed securities, asset-backed securities and corporate securities to simulate the universe of bonds in the market. The maturity of the bonds in the index are over one year.

Notes:

The index constructed by the Lehman Brothers is considered to be the best overall bond index as it is used by over 90% of investors in the United States. Along with the aggregate index, Lehman also has bond indexes tailored to European and Asian investors. This index cannot be purchased but is tracked by bond index funds, and it also has an iShare that tracks the index.

See also: Asset-Backed Security - ABS, Bond, Corporate Bond, Government Security, Index, Index Fund, iShares, Mortgage Backed Securities - MBS