US investment bank Lehman Brothers said on Wednesday it has launched a European asset-backed security (ABS) index, giving secondary market indications of high-grade bonds secured mostly by bank loans.
According to industry tracker Dealogic, a total of 910 ABS transactions worth more than 189 billion euros were completed in 2003.
The Lehman trading desk will supply price data for the index, and update it on a weekly basis. The index is available to Lehman clients via the Internet.
Lehman's ABS index will include constituent bonds which are rated investment grade by credit rating agencies Moody's Investors Service or Standard & Poor's. They must have an average life or maturity of more than one year remaining.