Barclays Capital unveils new CMBS index

Barclays Capital unveiled a new index to track investment-grade commercial mortgage-backed securities conduit and fusion deals issued since the start of 2010. The investment banking unit of London-based Barclays Bank said in a press release Thursday these types of CMBS transactions have been sold through private placements and ineligible for inclusion in the company’s current U.S. aggregate index. And while many of these deals are already eligible for inclusion in the Barclays Capital U.S. investment-grade CMBS index, the company wants to further differentiate them by including a lower minimum deal size of $250 million in the new index. Barclays Capital said the index, which launches Jan. 1 as U.S. CMBS Index 2.0, will be a good basis for investable index products, including total-return swaps, structured notes and exchange-traded funds. The company also plans to break out sub-indices based on quality rating and average life of the bonds. Write to Jason Philyaw.

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