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Published on 2/17/2010 in the Prospect News Emerging Markets Daily and Prospect News Structured Products Daily.

Dow Jones creates new Chile and Mexico indexes for LATixx index series

By Devika Patel

Knoxville, Tenn., Feb. 17 - Dow Jones Indexes, LVA Indices and Proveedor Integral de Precios said they have created 22 additional bond indexes for Chile and Mexico.

The new indexes are part of the Dow Jones LATixx index series, which measures corporate and government bonds in major Latin American countries and is designed to serve as basis for investment products such as exchange-traded funds, structured products, futures and options.

The additional Dow Jones LATixx indexes comprise 12 for Chile and 10 for Mexico.

For Chile:

• The Dow Jones LATixx Chile Corporate Bond UF indexes are made up of four indexes measuring the performance of Chilean UF-denominated corporate bonds with modified durations;

• The Dow Jones LATixx Chile Government UF Bond indexes are made up of five indexes measuring the performance of Chilean UF-denominated bonds issued by the Banco Central and the Tesoreria General de la Republica;

• The Dow Jones LATixx Chile Bank Bond index is for senior and subordinated bank bonds issued in Chile;

• The Dow Jones LATixx Chile Extended BCU5 index measures the performance of Central Bank BCU bonds with time to maturity between 1,282 and 2,377 days; and

• The Dow Jones LATixx Chile Government Peso Bond index is for Chilean Peso-denominated bonds issued by the Banco Central and Tesoreria General de la Republica.

For Mexico:

• The Dow Jones LATixx Mexico Corporate CORP FL DUR 0-5D index measures Mexican corporate bonds with floating rates and maturity dates of less than 1,820 days, commercial paper with a rating from Standard & Poor's equal to or greater than A and issues larger than Ps. 200 million;

• The Dow Jones LATixx Mexico Corporate CORP FX DUR 7+ D index measures Mexican corporate bonds with floating rates and maturity dates longer than 2,548 days, commercial paper with an S&P rating equal to or greater than A and issues larger than Ps. 500 million;

• The Dow Jones LATixx Mexico Government IPAB D index is for Mexican government bonds issued by the Institute for the Protection of Bank Saving;

• The Dow Jones LATixx Mexico Government Bondes D D index is for Mexican government bonds for the development of the federal government;

• The Dow Jones LATixx Mexico Government UMS EURO D index is for UMS bonds issued in euros by the Mexican government;

• The Dow Jones LATixx Mexico Government Udibonos CI D index measures inflation-protected Mexican government bonds in UDIS paying real rates already including taxes;

• The Dow Jones LATixx Mexico Government Float 12M+ D index represents investment in the same proportion as the current issues of floating-rate securities issued by the federal government;

• The Dow Jones LATixx Mexico Government REAL 10Y D index represents investment in the same proportion as the current issues of real-rate-coupon securities issued by the federal government including Udibonos, Banobras PICs, CBICs and Bonds of Road Infrastructure Compensation with maturities between 1,822 and 3,640 days;

• The Dow Jones LATixx Mexico Banking BANK 12M D index measures the performance of investments in local issues of banks; and

• The Dow Jones LATixx Mexico Asset Backed SHF D index measures the performance of mortgage bonds issued by Sociedad Hipotecaria Federal, the Mexican governmental bank for mortgage funding.

New York-based Dow Jones Indexes develops, maintains and licenses indexes for use as benchmarks and as the basis of investment products.


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