Australian Investors Podcast How fixed income indices actually work
Dec 14, 2025
Jessica Tan, Principal of Fixed Income Indices at S&P Dow Jones Indices, shares her unique insights on fixed income markets. She breaks down how she builds indices using a bento box analogy to convey the balance of data quality and pricing sources. Jessica highlights the key differences between global markets, particularly in Australia versus the U.S., and discusses the challenges of index building. She also offers life wisdom about seizing opportunities and diversifying skills, making this conversation both insightful and inspiring.
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Survivor-Sary That Changed Priorities
- Jessica survived a car flip in New Zealand and now treats every year as a reminder to act.
- The crash taught her to wear seatbelts and prioritise experiences over procrastination.
Fixed Income Indices Are Curated Data Products
- Fixed income indices are essentially curated datasets built to represent investable bond markets.
- Markets differ widely by issuer type, currency and supply dynamics, so indices must reflect those structural traits.
Market Structure Should Drive Index Design
- The Australian bond market is heavily government-dominated while other markets (e.g., US) have more corporate issuance.
- Index design must mirror each market's actual composition to be meaningful and investable.
