Euroclear Bank Launches First ECP Benchmarks
Euroclear Bank has launched a free online service that displays average yields for Euro Commercial Paper (ECP), known as ‘Euroclear ECP Indices’. This tool provides capital market professionals with weekly and daily computed yield data, sourced from Euroclear Bank as a neutral service provider, to track the evolution of the ECP market. The weekly Euroclear ECP benchmark data displays five ECP investment grade categories, including financial, corporate and sovereign issues, with different maturity periods, or tenors, of one month and three months, in three currencies (EUR, GBP and USD). The daily ECP benchmark data provides average yield data only on the highest quality paper (i.e. A1/P1/F1 paper) for the same maturity periods and currencies. Market professionals are able to download daily average weighted yields expressed in percentage format. The data is based on primary market ECP transactions settled at Euroclear Bank, calculated according to standard market practice for deriving annualised yield values. Issuers can use the yield information to benchmark their ECP offerings, whereas investors may use them to compare investment opportunities. ECP dealers will also find the data of value to price paper that is entering the ECP market for the first time.