State Street launches SPDR Barclays Capital Issuer Scored Corporate ETF

By Susanna Moon

Chicago, April 7 - State Street Global Advisors announced the launch of the SPDR Barclays Capital Issuer Scored Corporate Bond exchange-traded fund, which provides access to a new corporate bond indexing methodology.

The fund tracks the performance of the Barclays Capital Issuer Scored Corporate index, which contains publicly issued dollar-denominated corporate issues that are investment grade and have $250 million or more of par amount outstanding. The individual issuers in the index are weighted using return on assets, interest coverage and current ratio, and they are rebalanced every six months.

The fund provides an alternative to market value-weighted index strategies, according to a company press release.

"Despite some compression in spreads over the past year, corporate credit remains a very attractive asset class for investors," Kevin Anderson, global chief investment officer for fixed income and currency at State Street Global Advisors, said in the release.

"The SPDR Barclays Capital Issuer Scored Corporate Bond ETF and forthcoming SSgA Issuer Scored Corporate Index Strategy strengthen our fixed income offering by providing investors and advisers with solutions that address the concerns some have with the allocation of capital in existing corporate credit index strategies."

The fund began trading on the NYSE Arca on Thursday under the symbol "CBND."

The company said it will soon add the SSgA Issuer Scored Corporate Index Strategy.

State Street Global Advisors is the asset management arm of State Street Corp., a financial holding company based in Boston.

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