The Markit CVBX is a series of indices, each consisting of 100 convertible securities, designed to provide a broad representation of the US convertible bond market. The CVBX will be accompanied by a series of delta-hedged total-return stock indices or Markit CVEX, each corresponding to a specific CVBX series.
A new series is issued every 6 months to represent the most current composition of the convertible bond market. Each series is cash settled every 6 months and issues are removed based on corporate events or hard-to-borrow cases, and matures 2 years from inception.
Total return of the index includes market value changes, coupon payments and other interim cashflows (such as conversion, call exercise, matured obligations, and other events).
Markit CVEX is the tradable form of the Markit iBoxx USD Liquid Convertible Bond Delta Hedging Index. It includes the same 100 names as in the Markit CVBX and can be used to hedge your bond exposure.
Additional details on the creation of each index can be found in the rules document.