Bloomberg News

Markit Group Announces Index to Measure Loan Returns

October 17, 2011

(Updates loan returns in third paragraph.)

Oct. 17 (Bloomberg) -- Markit Group Ltd. has created a loan index to track the total return of 100 of the most liquid, dollar-denominated leveraged loans.

Constituents of the Markit iBoxx USD Liquid Leveraged Loan Index are selected from a pool of about 3,000 transactions, the company said today in a statement. The index will be valued daily and rebalanced monthly.

Year to date, the debt has lost 2.13 percent, according to the Markit Liquid Leveraged Loan Index, compared with a gain of 10.97 percent in 2010. Month to date the index has returned 2.06 percent.

“The Markit Liquid LLI provides important insight into the performance of the most liquid leveraged loans,” Armins Rusis, global head of data, indices and research at Markit said in the statement. “This is yet another product from Markit that helps institutions and investors do business.”

Leveraged loans are ranked below Baa3 by Moody’s Investors Service and less than BBB- by Standard & Poor’s.

--Editor: Faris Khan

To contact the reporter on this story: Krista Giovacco in New York at kgiovacco1@bloomberg.net

To contact the editor responsible for this story: Faris Khan at fkhan33@bloomberg.net


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