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Lehman Brothers Government/Corporate Bond Index

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Definition of 'Lehman Brothers Government/Corporate Bond Index'

An unmanaged market-weighted index, comprised of government and investment grade corporate debt instruments with maturities of one year or greater. The Lehman Brothers Government/Corporate Bond Index is a total return benchmark index for many bond funds.
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Investopedia explains 'Lehman Brothers Government/Corporate Bond Index'

The Government/Corporate Bond Index is a subset of the Lehman Aggregate Bond Index. Lehman determines if a bond is investment grade by its listed credit rating by Moody's. Investment grade bonds have a rating of Baa or higher on the Moody's scale. If the bond is unrated by Moody's, an S&P rating of BBB or higher will suffice. The index's measures performance by total return, which includes the capital appreciation or depreciation of the bond, combined with its coupon income as a percentage of the original investment.

Related Definitions

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    Lehman Aggregate Bond Index

    An index used by bond funds as a benchmark to measure their relative performance. The index includes government securities, mortgage-backed securities, asset-backed securities and ...
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  • Government Security

    A government debt obligation (local or national) backed by the credit and taxing power of a country with very little risk of default.
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  • Corporate Bond

    A debt security issued by a corporation and sold to investors. The backing for the bond is usually the payment ability of the company, which is typically money to be earned from future ...
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    • Moody's Bond Survey

      A weekly publication that reports changes in corporate bond quality ratings for publicly traded companies, lists new debt registrations and provides market commentary. Also known as ...
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    • Standard & Poor's - S&P

      A financial services company that rates stocks and corporate and municipal bonds according to risk profiles.
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    • Benchmark

      A standard against which the performance of a security, mutual fund or investment manager can be measured. Generally, broad market and market-segment stock and bond indexes are used for ...
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    • Total Return

      When measuring performance, the actual rate of return of an investment or a pool of investments over a given evaluation period. Total return includes interest, capital gains, dividends ...
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    • Lehman Brothers

      A firm that was once considered one of the major players in the global banking and financial services industries, but declared bankruptcy on September 15, 2008, after a catastrophic ...
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