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Article: Indexes: Lehman to Raise Liquidity Levels, Use S&P Ratings.
- Article from:
- The Bond Buyer
- Article date:
- October 13, 2004
- Author:
CopyrightCOPYRIGHT 2004 SourceMedia, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Lehman Brothers last week announced plans to raise liquidity requirements and to begin incorporating Standard & Poor's ratings for most of its U.S. municipal bond indexes in 2005.
The modifications are being implemented to make the benchmarks more efficient representations of the outstanding market, according to Peter DeGroot, municipal bond strategist at Lehman.
Lehman maintains more than 2,500 rules-based, market-value-weighted tax-exempt muni indexes to track the $2 trillion municipal bond market. The indexes are widely used by portfolio managers to benchmark their own performance against the broader market.
The new liquidity standards are ...