Performance control plays an important role in institutional portfolios and fund management. The 14 FRN Main Index Categories of the Neutral Pricing System have proven valuable for providing an overview of the segment floating rate notes. Only bonds that meet high quality demands in regard to maturity and issuing size are included in the floater indices. In the FRN Financial Single A index up to October 2010, for example, around 450 bonds with Single A Rating can be found that have maturities between 6 months and 10 years.
The bonds in the Floater Data Base can not only be filtered according to rating, but also according to the largest spread changes compared to the previous day. Don’t rely on the appraisals of the rating agencies for your portfolio assessment, for they are often based on previous developments. Rely on the opinions of the secondary market to individual issuers and whole peer groups.