Lehman Brothers Government/Corporate Bond Index


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.

BREAKING DOWN '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.

  1. Benchmark

    A standard against which the performance of a security, mutual ...
  2. Lehman Brothers

    A firm that was once considered one of the major players in the ...
  3. Corporate Bond

    A debt security issued by a corporation and sold to investors. ...
  4. Government Security

    A bond (or debt obligation) issued by a government authority, ...
  5. Standard & Poor's - S&P

    The world's leading index provider and the foremost source of ...
  6. Total Return

    When measuring performance, the actual rate of return of an investment ...
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