Barclays announces changes to US High Yield Very Liquid Index

By Tali David

Minneapolis, Sept. 13 - Barclays announced changes to its US High Yield Very Liquid Index, an index used for exchange-traded funds in both the United States and Canada and for other institutional and research purposes.

Starting Feb. 1, 2013, the following changes will begin:

• Increasing the number of eligible bonds from the largest bond per issuer to the three largest bonds per issuer;

• Lowering the minimum security amount outstanding threshold to $500 million from $600 million;

• Lengthening the seasoning period from issuance for eligible bonds to five years from three years; and

• Capping the exposure of any index eligible issuer at 2% percent. There is currently no issuer cap in place.

Barclays said these changes enhance the usability and replicability of this benchmark and reflect the growth and evolution of the high-yield bond market as a whole.

Barclays offers investment banking products and services to its clients through Barclays Bank plc.

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