S&P pulls three issues from preferreds index, mulls inclusion rule

By Toni Weeks

San Luis Obispo, Calif., March 20 – S&P Dow Jones Indices announced changes to the S&P U.S. Preferred Stock index.

The company will delete from the index the 6.7% series CC capital securities of JPMorgan Chase Capital XXIX on April 1, the 6.875% series O cumulative preferred shares of Public Storage on April 14 and the 6.375% noncumulative trust preferred securities of Deutsche Bank Capital Funding Trust VIII on April 17.

Each series has been called for full redemption, thus necessitating removal from the index, according to a company announcement.

In other news, S&P Dow Jones Indices is considering removing the requirement that a minimum of 15 trust preferred securities be included in the S&P U.S. Preferred Stock index.

Currently, the methodology requires at least 15 trust preferreds to be included. If fewer than 15 qualify for the index based on the criteria of size, liquidity, issuance type, exchange listing and time to maturity, the liquidity constraints for these securities are relaxed, and the largest issues are added to the index until the count reaches 15.

The company is conducting a survey with members of the investment community in regards to the methodology change. Responses should be sent via email to index_services@spdji.com by April 17.

New York-based S&P Dow Jones Indices is a part of McGraw Hill Financial and provides index-based concepts, data and research.

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