S&P Expands CDS Index Family to Include Sector Indices

Jun 30, 2010, 10:00 ET from Standard & Poor's

NEW YORK, June 30 /PRNewswire/ -- Providing a new, relative benchmark for the CDS market, Standard & Poor's, the world's leading index provider, announced today that it has launched a series of CDS sector indices.  The S&P CDS Sector Indices seek to track the credit default swap market for a select number of corporate credits in distinct Global Industry Classification Standard (GICS®)(1) sectors and sub industries.

The S&P CDS Sector Indices are designed to reflect the credit default swap market for a sector of corporate credits, increasing transparency for market participants. The Indices may be country specific or global in nature and will cover a distinct industry segment. They offer the independence of the S&P CDS Index Committee and third party pricing.

Each index is designed with a focus on liquidity with the goal of supporting investment products such as index funds, index portfolios, and index futures and options. Each series of the S&P CDS Sector Indices has a 5 1/4 year maturity as measured from its effective date.

The S&P CDS U.S. Sector Indices are equal weighted, with a given number of reference entities and a fixed coupon. Index levels and average CDS spreads for each index are published daily.

"Tracking the more liquid elements of the market, these Indices add transparency into how the CDS markets are reacting in the Consumer Discretionary, Consumer Staples, Energy and Health Care sectors," says JR Rieger, Vice President of Fixed Income Indices at S&P Indices.

For more information on these Indices, please visit: www.fixedincomeindices.standardandpoors.com.

About S&P Indices

S&P Indices, the world's leading index provider, maintains a wide variety of investable and benchmark indices to meet an array of investor needs. Over $1.25 trillion is directly indexed to Standard & Poor's family of indices, which includes the S&P 500, the world's most followed stock market index, the S&P/Case-Shiller Home Price Indices, the leading measure of U.S. home prices, the S&P Global BMI, an index with approximately 11,000 constituents, the S&P GSCI, the industry's most closely watched commodities index, and the S&P National AMT-Free Municipal Bond Index, the premier investable index for U.S. municipal bonds. For more information, please visit www.standardandpoors.com/indices.

About Standard & Poor's

Standard & Poor's, a subsidiary of The McGraw-Hill Companies (NYSE: MHP), is the world's foremost provider of independent credit ratings, indices, risk evaluation, investment research and data. With offices in 23 countries and markets, Standard & Poor's is an essential part of the world's financial infrastructure and has played a leading role for 150 years in providing investors with the independent benchmarks they need to feel more confident about their investment and financial decisions. For more information, visit http://www.standardandpoors.com.

(1) GICS enables market participants to identify and analyze a customized group of companies from a common global standard by breaking down the global market into four levels of detail: 10 sectors, 24 industry groups, 68 industries, and 154 sub-industries.

SOURCE Standard & Poor's