NEW YORK–(BUSINESS WIRE)–Nov. 13, 2003–Building on the success of its 125-name investment-grade credit default swap index, iBoxx CDX.NA.IG, the iBoxx CDX consortium of eleven leading globaldealers today announced the launch of “iBoxx CDX.NA.HY”, a 100-name tradable index of credit default swaps (“CDS”) on U.S. non-investment grade companies. The 100 names in iBoxx CDX.NA.HY are equallyweighted and were determined using transparent rules designed to select a representative group of diversified U.S. sub-investment grade borrowers. Investors will be able to trade iBoxx CDX.NA.HYoverall as well as in two sectors: a BB-rated portfolio and a B-rated portfolio.
The specific names in iBoxx CDX.NA.HY will be distributed on Thursday, November 13th, by the members of the consortium. The index’s spread level will be set on Monday, November 17th, and trading will begin Tuesday, November 18th. The index levels, Reference Entities and rules will be published on Bloomberg Screen HYX CDS<Corp><Go>.
iBoxx CDX.NA.HY and its two sub-sectors will trade “No Restructuring” in unfunded swap format in five-year maturity. iBoxx CDX.NA.HY will be rebalanced semi-annually according to index rules, with any changes to the index’s composition implemented by iBoxx, overall administrator of iBoxx CDX.NA.HY.
In the near future, the consortium expects to announce iBoxx CDX.NA.HY options and tranches.
The consortium issued a joint statement: “Investors have overwhelmingly embraced our investment-grade CDX product as a long-awaited breakthrough for liquidity, transparency and pricing in a highly diversified credit product. Our new high-yield CDX product meets strong follow-on investor demand for exposure across the credit spectrum. CDX.NA.HY embodies the very same commitment to an open platform for new qualified consortium members and independent, third-party management by iBoxx. We believe CDX.NA.HY will also become the industry standard in short order.”
Notes to Editors:
About ABN AMRO
Netherlands-based ABN AMRO is a leading international bank with total assets of more than USD 600bn. It has over 3.000 branches in 66 countries and territories, and has a staff of about 105,000 full time equivalents worldwide. ABN AMRO is listed on the Euronext, London and New York stock exchanges.
ABN AMRO’s Wholesale Clients Strategic Business Unit provides integrated corporate and investment banking solutions to around 10,000 corporate, institutional and public sector clients in over 45 countries. Its client-led approach is sector based and structured around four product groups: Financial Markets, which includes fixed income, syndicated loans, treasury, structured and project finance and risk management; Working Capital, which offers liquidity management, global payments and receivables and trade finance; Corporate Finance & Equities, providing corporate advisory as well as equity capital markets expertise and secondary market services; and Private Equity. With a global network, specialists in all major industry sectors and a broad range of products, ABN AMRO provides local and global expertise for complex cross-border deals.
About Barclays Capital
Barclays Capital is the investment banking division of Barclays PLC. The firm employs over 5,000 staff and has significant operations in all the world’s major financial centers, including regional headquarters in London, New York, Hong Kong and Tokyo. Barclays Capital is debt focused, providing its clients with a broad range of financing and risk management products. Barclays Capital acts internationally as intermediary and adviser to corporations, financial institutions, governments and supranational organizations, and has the global reach and distribution power to meet the needs of issuers and investors worldwide.
About Bear Stearns
Founded in 1923, Bear, Stearns & Co. Inc. is a leading worldwide investment banking and securities trading and brokerage firm, and the major subsidiary of The Bear Stearns Companies Inc. (NYSE:BSC). With approximately $34.4 billion in total capital, Bear Stearns serves governments, corporations, institutions and individuals worldwide. The company’s business includes corporate finance and mergers and acquisitions, institutional equities and fixed income sales, trading and research, private client services, derivatives, foreign exchange and futures sales and trading, asset management and custody services. Through Bear, Stearns Securities Corp., it offers financing, securities lending, clearing and technology solutions to hedge funds, broker-dealers and investment advisors. Headquartered in New York City, the company has approximately 10,500 employees worldwide. For additional information about Bear Stearns, please visit the firm’s Web site at http://www.bearstearns.com.
About Citigroup
Citigroup (NYSE: C), the preeminent global financial services company with some 200 million customer accounts in more than 100 countries, provides consumers, corporations, governments and institutions with a broad range of financial products and services, including consumer banking and credit, corporate and investment banking, insurance, securities brokerage, and asset management. Major brand names under Citigroup’s trademark red umbrella include Citibank, CitiFinancial, Primerica, Smith Barney, Banamex, and Travelers Life and Annuity. Additional information may be found at: www.citigroup.com.
About Credit Suisse First Boston
Credit Suisse First Boston (CSFB) is a leading global investment bank serving institutional, corporate, government and individual clients. CSFB’s businesses include securities underwriting, sales and trading, investment banking, private equity, financial advisory services, investment research, venture capital, correspondent brokerage services and asset management. CSFB operates in 69 locations in 34 countries across five continents. The Firm is a business unit of the Zurich-based Credit Suisse Group, a leading global financial services company.
About Deutsche Bank
With roughly EUR 851 billion in assets and approximately 69,300 employees, Deutsche Bank (NYSE: DB) offers its 13 million clients unparalleled financial services in 76 countries throughout the world. Deutsche Bank competes to be the leading global provider of financial solutions for demanding clients creating exceptional value for its shareholders and people.
Deutsche Bank ranks among the global leaders in corporate banking and securities, transaction banking, asset management, and private wealth management, and has a significant private & business banking franchise in Germany and other selected countries in Continental Europe.
Deutsche Bank Securities Inc. is the investment banking and securities arm of Deutsche Bank AG in the United States.
www.deutsche-bank.com
About Goldman Sachs
Goldman Sachs is a leading global investment banking, securities and investment management firm that provides a wide range of services worldwide to a substantial and diversified client base that includes corporations, financial institutions, governments and high net worth individuals. Founded in 1869, it is one of the oldest and largest investment banking firms. The firm is headquartered in New York and maintains offices in London, Frankfurt, Tokyo, Hong Kong and other major financial centers around the world.
About HSBC Bank USA
HSBC Bank USA is a member of the HSBC Group, an international banking and financial services organization with major commercial and investment banking franchises in Europe, the Asia-Pacific region, the Americas, the Middle East and Africa. With some 180,000 employees, 9,500 offices in 80 countries, and a market capitalization of $128 billion, the HSBC Group is the world’s second largest financial institution. The HSBC Group offers a full range of commercial and investment banking services to private clients, corporations, financial institutions and governments around the globe. HSBC Holdings plc, the ultimate parent company of the HSBC Group, is headquartered in London.
About iBoxx
iBoxx was established in 2001 by ABN AMRO, Barclays Capital, BNP Paribas, Deutsche Bank, Deutsche Borse, Dresdner Kleinwort Wasserstein, Morgan Stanley and UBS Investment Bank. Its mission is to calculate and publish a new generation of fixed income prices and indices, based on the principles of multiple contributor pricing, neutrality, third party quality control, transparency and open access to market participants. iBoxx indices have established themselves as leading benchmarks among asset managers in Europe. A family of US Dollar cash bond indices will be launched in early 2004 in conjunction with RiskMetrics
About Lehman Brothers
Lehman Brothers (NYSE: LEH), an innovator in global finance, serves the financial needs of corporations, governments and municipalities, institutional clients, and high-net-worth individuals worldwide. Lehman Brothers maintains leadership positions in equity and fixed income sales, trading and research, investment banking, private equity, private client services, and fixed income indices. The Firm is headquartered in New York, London, and Tokyo and operates in a network of offices around the world. For further information about Lehman Brothers’ services, products, and recruitment opportunities, visit our Web site at www.lehman.com.
About Merrill Lynch
Merrill Lynch is one of the world’s leading financial management and advisory companies, with offices in 36 countries and total client assets of approximately $1.4 trillion. As an investment bank, it is a leading global underwriter of debt and equity securities and strategic advisor to corporations, governments, institutions and individuals worldwide. Through Merrill Lynch Investment Managers, the company is one of the world’s largest managers of financial assets, with assets under management of $473 billion. For more information on Merrill Lynch, please visit http://www.ml.com.
About UBS
UBS is one of the world’s leading financial firms, combining financial strength with a reputation for innovation and a global culture that embraces change.
UBS is the world’s largest wealth manager, a premier investment banking and securities firm, and one of the largest global asset managers. In Switzerland, UBS is the market leader in retail and commercial banking.
UBS, headquartered in Zurich and Basel, employs almost 67,000 people, and has operations in over 50 countries and in all major financial centers.
