Legacy Corporate Bond Benchmarking Survey

It has been proposed that certain legacy corporate bonds should transition from being benchmarked against the 30-year Treasury to the 20-year Treasury, in line with the new-issue market. This survey was designed to gather market input about the operational challenges associated with transitioning certain types of legacy corporate bonds benchmarked to the 30-year Treasury to the 20-year Treasury, and the extent to which any such transition could enhance or impair liquidity in, or otherwise support or disrupt, the fairness and efficiency of the secondary markets in which such bonds are traded.

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Background on Survey

• It has been proposed that certain legacy corporate bonds should transition from being benchmarked against the 30-year Treasury to the 20-year Treasury, in line with the new-issue market.
• This survey was designed to gather market input about the operational challenges associated with transitioning certain types of legacy corporate bonds benchmarked to the 30-year Treasury to the 20-year Treasury, and the extent to which any such transition could enhance or impair liquidity in, or otherwise support or disrupt, the fairness and efficiency of the secondary markets in which such bonds are traded.
• Individual firm responses have been maintained as confidential and survey results are aggregated and anonymized to preserve that confidentiality.
• The survey was held open from February 22 through March 2.
• 32 firms responded – 20 dealers and 12 buyside firms.