#United States #New York #UBS #S&P DJI #Leveraged Loans

S&P Dow Jones Indices and UBS Launch SP UBS Leveraged Loan Indices

On December 4, 2024, S&P Dow Jones Indices (S&P DJI) announced a strategic partnership with UBS to introduce the SP UBS Leveraged Loan Indices. This initiative marks a significant development in the realm of global loan markets, as it aims to provide investors with a comprehensive perspective on the performance and insights of various leveraged loans.

Historically known as the Credit Suisse Leveraged Loan Indices, this new suite of indices has been designed to measure the investable universe of leveraged loans denominated in USD, EUR, and GBP, covering a whopping USD 1.6 trillion in market value. S&P DJI will manage nearly 2,000 indices in this suite, which further cements its position as a leading index provider globally.

Frans Scheepers, Head of Fixed Income, Currency and Commodity Products at S&P DJI, stated that these indices will play a vital role in enhancing market transparency and accessibility for participants. He noted that it reflects the growing demand for robust indexing solutions in the leveraged finance sector. The indices are aimed at providing essential benchmarking and performance measurement tools within this expanding financial ecosystem.

In recent years, the U.S. leveraged loan market has seen remarkable growth, surging from approximately USD 400 million to around USD 1.3 trillion, comparable to the U.S. high yield bond market. This growth is accompanied by an increasing range of index-linked products and derivatives.

Dushyant Chadha, Global Head of Derivatives and Solutions at UBS, expressed excitement about the collaboration. He remarked that they are poised to leverage UBS's strong position in the loans space alongside S&P DJI's reputation as a premier index provider. He emphasized that market participants can rely on these indices for unparalleled market insights and pricing.

The recent launch follows an agreement reached earlier in November 2024 between S&P DJI and UBS regarding the transition and rebranding of the leveraged loan indices. As part of the enhancement process, S&P DJI’s existing iBoxx USD Leveraged Loan Indices will also be integrated into the SP UBS suite by 2025. This merger reflects a strategic effort to expand their offerings and make the suite more comprehensive.

Looking to the future, both S&P DJI and UBS anticipate enhancing the range of leveraged loan indices to provide more valuable tools for investors and market participants worldwide. This collaborative effort aims to solidify the position of the SP UBS Leveraged Loan Indices as a premier resource for evaluating market trends and product offerings in the leveraged finance landscape.

For additional details on the SP UBS Leveraged Loan Indices, you can visit S&P Global and for more information about UBS, check their official site at UBS.

About SP Dow Jones Indices

S&P Dow Jones Indices is recognized globally for its extensive range of index-based concepts, data, and research. As the home of influential financial market indicators such as the S&P 500 and Dow Jones Industrial Average, it remains a trusted name in investment metrics since its inception in 1884 by Charles Dow. With a commitment to innovation, S&P DJI plays a crucial role in defining how investors engage with the markets today.