S&P Licenses S&P/LSTA Leveraged Loan 100 Index to Invesco PowerShares; Set to Serve as Basis for Industry’s First Senior Loan ETF
Standard & Poor’s, the world’s leading index provider, announced today that it has licensed the S&P/LSTA Leveraged Loan 100 Index, designed to reflect the largest facilities in the leveraged loan market, to Invesco PowerShares Capital Management LLC for the launch of the industry’s first senior loan ETF. The PowerShares ETF is expected to begin trading March 3, 2011, on the NYSE Arca.
The S&P/LSTA U.S. Leveraged Loan 100 Index seeks to mirror the market-weighted performance of the largest institutional leveraged loans, as determined by criteria, based upon market weightings, spreads, and interest payments. The Index consists of 100 loan facilities drawn from a larger benchmark, the S&P/LSTA (Loan Syndications and Trading Association) Leveraged Loan Index (LLI), which covers approximately 1,000 facilities and has a market value of more than $465 billion, as of December 31, 2010.
“The S&P/LSTA U.S. Leveraged Loan 100 Index provides the market with an important, timely perspective on how the largest and more significant leveraged loans are performing – offering greater transparency into this important segment of the market,” says JR Rieger, Vice President of Fixed Income Indices at S&P. “We are very excited to be working with Invesco PowerShares on this first of a kind effort in the leveraged loan market.”
The constituents of the S&P/LSTA U.S. Leveraged Loan 100 Index are drawn from a universe of syndicated leveraged loans representing over 90% of the leveraged loan market. All syndicated leveraged loans covered by the S&P/LSTA Leveraged Loan Index universe are eligible for inclusion in the S&P/LSTA U.S. Leveraged Loan 100.
For more information on the S&P/LSTA U.S. Leveraged Loan 100 Index, please visit: www.fixedincomeindices.standardandpoors.com.
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SOURCE Standard & Poor’s