Morningstar Inc. of Chicago today announced the launch of a government-guaranteed corporate bond index.
The genesis of the index is the Temporary Liquidity Guaranty Program created by the Federal Deposit Insurance Corp., which allows bank holding companies to issue senior unsecured debt guaranteed by the U.S. government.
As of last week, more than $120 billion in guaranteed corporate bonds had been issued, according to Morningstar.
The new index is composed of 23 TLGP bond issues and others may be added later.
Bonds issued under the program must come to market by June 30, with interest and principal scheduled for payment before June 30, 2012, according to Morningstar.