NEW YORK, March 2, 2011 /PRNewswire/ -- 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.
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.
Standard & Poor's does not sponsor, endorse, sell or promote any S&P index-based investment product. This document does not constitute an offer of services in jurisdictions where Standard & Poor's or its affiliates do not have the necessary licenses. Standard & Poor's receives compensation in connection with licensing its indices to third parties. It is not possible to directly invest in an index.
SOURCE Standard & Poor's