Methodology Change | Solactive US High Yield Bond Indices | 28th June 2018
Today, on 28 June 2018, Solactive announces the following changes to the methodology of its US High Yield Bond Indices:
In order to account for the rising number of Distressed Debt Exchanges, Solactive will change the corporate action methodology for its US High Yield Indices as follows:
In case 90% or more of the amount outstanding of an index constituent is accepted for an exchange in a Distressed Debt Exchange, the bond will not be exchanged into the new bond/instrument but removed from the index at its latest available price.
The index guidelines will be modified accordingly.
Solactive AG’s Oversight Committee is of the opinion that the suggested methodology change improves the index quality and keeps it in line with regulatory requirements.
The change will be effective on 26 July 2018 for the following indices DE000SLA0PL8; DE000SLA2M23; DE000SLA2XA1; DE000SLA3DM6; DE000SLA3ZE6; DE000SLA3ZF3; DE000SLA44N5; DE000SLA4551; DE000SLA4569 and will be rolled out for all Solactive Indices during the next quarters in order to establish a consistent corporate action treatment.
The new index guidelines will be available on this date.