NEW YORK, Oct. 18 /PRNewswire/ -- Merrill Lynch (NYSE: MER) today
announced the introduction of its Global High Yield & Emerging Markets Plus
Index. This new market indicator combines Merrill Lynch's closely followed
Global High Yield Index with two new indices tracking the debt of Emerging
Markets Sovereign and Corporate issuers: the Global Emerging Markets Sovereign
Plus Index, and the Global Emerging Markets Corporate Index. Together, these
three markets comprise approximately $500 billion in low grade debt
denominated in both U.S., Canadian and European currencies.
Selection Criteria
Constituent index members are selected monthly on the last calendar day of
the month based on a clearly defined set of selection rules. The indices are
compiled daily and are published over a variety of electronic services
including Bloomberg and Reuters. The indices are totally transparent -- all
investors are granted full access to daily electronic files of bond-level
constituent members and closing prices.
The Global High Yield & Emerging Markets Plus Index is the most
comprehensive indicator of low grade debt in the global fixed income markets.
It is a capitalization-weighted aggregation of the Global Emerging Markets
Plus, Global Emerging Market Corporate and Global High Yield Indices.
Criteria for these indices are enumerated below:
Global Emerging Market Sovereign Plus Index (history starting
December 31, 1991): U.S. dollar and euro-denominated sovereign fixed and
floating rate debt of countries with a BBB or lower foreign currency long-term
debt rating (including countries that are not rated). Individual bonds must
have at least one year remaining term to maturity; a minimum face value
outstanding of $300 million or 300 million euros; be issued in a market other
than the issuer's domestic market; and have available price quotations. New
issues qualify for inclusion after they settle. Thirty-four sovereign issuers
currently qualify for inclusion in the index based on these criteria. In
addition to the "Sovereign Plus" Index, Merrill Lynch also publishes a
BB & Lower Sovereign index and a BBB-B Sovereign Index.
Global Emerging Market Corporate Index (history starting
December 31, 1998): U.S. dollar and euro-denominated fixed rate debt of
corporate issuers domiciled in countries rated below investment grade
(i.e., BB or lower foreign currency long-term debt rating, including countries
that are not rated). Individual bonds must have a credit rating of C or above
(based on a composite of Moody's and S&P); at least one year remaining term to
maturity; a minimum face value outstanding of $100 million or
100 million euros; be issued in a market other than the issuer's domestic
market; and have available price quotations. New issues qualify for inclusion
after they settle.
Global High Yield Index (history starting December 31, 1997): U.S. dollar,
Canadian dollar, sterling and euro-denominated fixed rate debt of corporate
issuers domiciled in an investment grade rated country (i.e., BBB or higher
foreign currency long-term debt rating). Individual bonds must be rated below
investment grade (i.e., BB or lower based on a composite of Moody's and S&P)
but not in default; must have at least one year remaining term to maturity; a
minimum face value outstanding of $100 million, C$50 million, 50 million
pounds silver, or 50 million euros; and have available price quotations. New
issues qualify for inclusion after they settle. In addition to the Global
High Yield Index, Merrill Lynch also publishes a U.S. High Yield Index, U.S.
Cash Pay High Yield Index, European Currency High Yield Index, and European
Issuers High Yield Index.
Each of the above indices are supported by an extensive set of sector
indices that segment each market by currency, region, country, and type.
Historical data, including daily returns and spreads, is easily accessible for
all Merrill Lynch indices, facilitating a wide range of market comparisons and
relative value analyses.
Accessing the Indices
The Global High Yield & Emerging Markets Indices can be viewed daily over
the Bloomberg and Reuters services on the following pages:
Bloomberg:
Global High Yield & Emerging Markets Plus HA00
Global Emerging Markets Sovereign Plus IP00
Global Emerging Markets Sovereign (BB & Lower) IG00
Global BBB-B Sovereign IQ00
Global Emerging Market Corporates IC00
Global High Yield HW00
Reference page for all available indices IND1
Reuters:
High Yield & Emerging Markets Indices
MERHIYLD
Reference page for all available indices MERINDEX
SOURCE Merrill Lynch & Co, Inc.
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CONTACT:
Quantitative Analysis & Portfolio Strategy -
Phil Galdi, 212-449-5545 or Preston Peacock, +44-0-171 867 3927,
or Research Communications - Susan McCabe, 212-449-0389 or Angela
Wrigglesworth, +44-0-171-867-2763, all of Merrill Lynch
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