DEFINITION of 'Revdex'
A bond index that estimates the approximate yield that an investor will receive if he or she invests in revenue bonds maturing in 30 years. This index is comprised of a broad range of 25 revenue bond issues with investment grade ratings. The index provides an estimate of the yield on a 30-year revenue bond offered under current market conditions.
This index is also known as the "25 Bond Index."
BREAKING DOWN 'Revdex'
A wide range of revenue bonds is used from differing project types such as bridges, tolls, housing, sewage and hospitals. The index can be used by investors to gauge or estimate the yield that might be obtained on a 30-year revenue bond under current market conditions. Because the index contains issues from a broad variety of sectors, it can provide the investor with a better sense of the "going rate" or yield that might be expected on such a revenue bond. This can help to evaluate the investment value of any individual revenue bond