News Releases

New York, NY (October 21, 2008) – Barclays Capital, publisher of leading broad market bond benchmarks such as the Global Aggregate, U.S. Aggregate, Pan-European Aggregate, and Asian-Pacific Aggregate Indices, today announced how expected government guaranteed bank debt will be classified in its Global Family of Indices.  In addition, Barclays Capital has announced a clarification on the sector classification of financial institutions where central governments have taken large ownership stakes in efforts to stabilize specific issuers and the global financial markets.

Classification of government guaranteed bank debt:

• Newly issued bank debt that is guaranteed by central governments as part of previously announced government initiatives or planned future initiatives will be classified as Government-Related>Agency>Government Guaranteed debt in all Aggregate Index benchmarks if the guarantee covers both principal and interest. Longer dated bullet securities that mature after a government guarantee expires will be classified as corporates at issuance because the principal is not fully guaranteed. 
• As more details of the various government guarantee programs emerge, the Barclays Capital Index Products Group will continue to monitor new issuance patterns and review the appropriate classification of such debt in its Aggregate Index family based on the guidelines outlined above.    

Classification of financials with ownership stakes taken by central governments:

• Financial institutions where central governments have recently taken ownership stakes as a stabilization measure will remain classified in their current corporate sectors, but will be reviewed as needed on a periodic basis. 
• Fannie Mae and Freddie Mac debentures currently in the U.S. Agency Index will be reclassified from their current Government-Related>Agency>Government Sponsored subsector to the Government-Related>Agency>Government Owned, No Guarantee subsector.  U.S. Agency and U.S. Government Index eligibility will be unaffected.  This re-classification will occur at the close of business on November 28, 2008 and will be reflected in index returns from December 1, 2008 forward.
• Goldman Sachs and Morgan Stanley debt currently in the Corporate>Financial Institutions>Brokerage subsector will be reclassified to the Corporate>Financial Institutions>Banking subsector as a result of their recent chartering as bank holding companies.  This re-classification will occur at the close of business on November 28, 2008 and will be reflected in index returns from December 1, 2008 forward.

For further information, please contact:

Seth Martin
+1 (212) 412 7565
seth.martin@barclayscapital.com
 
Sarah Naegele
+1 (646) 333-9051
sarah.naegele@barclayscapital.com

About Barclays Capital Indices

Barclays Capital bond market indices (now including the Lehman Brothers Global Family of Indices) are the most widely accepted benchmarks in the asset management industry, used by over 90 percent of US institutional investors, a majority of large European investors, and a growing share of Asia Pacific managers.

About Barclays Capital

Barclays Capital is the investment banking division of Barclays Bank PLC. With a distinctive business model, Barclays Capital provides large corporate, government and institutional clients with a comprehensive set of solutions to their strategic advisory, financing and risk management needs.  Barclays Capital has offices around the world, employs over 20,000 people and has the global reach, advisory services and distribution power to meet the needs of issuers and investors worldwide. For further information about Barclays Capital, please visit our website www.barclayscapital.com.

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