Products September 16, 2009

S&P Introduces Sec Lending Indexes

Standard & Poor's Index Services has launched what it says is "the first ever public index series designed to measure the average cost of borrowing U.S. equities."

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According to a press release, the S&P Securities Lending Index Series seeks to reflect the average securities-lending rate for the constituents of the S&P 500, S&P MidCap 400, S&P SmallCap 600, and the underlying GICS sector sub-indexes for all three leading U.S. equity benchmarks. In order to be classified as an eligible security in the S&P Securities Lending Index, a company must be a constituent of the related equity index.

Index constituents must also have a consistently available aggregate weighted average securities-lending rate and are then weighted based on their respective weight in the related equity index. The index undergoes a daily rebalancing to adjust for all constituent and weighting changes that occur in the related equity index.

The indexes are designed to measure the securities-lending rates associated with loans at the intermediary level, typically between custodians and prime brokers. These are private transactions that take place before loans are made to end-borrowers such as option traders, hedge funds, and other asset managers.

More information is available at www.standardandpoors.com/indices.

Data & Research September 16, 2009

Workers Reduce Savings to Get By

A CareerBuilder survey found more than one-in-five (21%) workers said they have reduced their 401(k) contributions or personal savings in the last six months to get by financially.

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An almost equal number (23%) of workers earning six figures or more also reported that they have reduced their 401(k) or savings, according to a press release.

In addition, the number of workers who said they do not participate in any programs such as 401(k), IRAs, or retirement plans has risen to 36% from 31% in 2008. One-third of respondents also reported they don’t put any money aside into their savings each month, up from 25% who said so in 2008.

Thirty percent indicated they set aside $100 or less per month for savings and 16% save less than $50.

The survey found more workers are struggling with their budgets since the economic downturn began. Six-in-10 (61%) workers reported they always or usually live paycheck to paycheck just to make ends meet, up from 49% last year and 43% in 2007.

Even those in the higher income bracket are struggling, as 30% with salaries of $100,000 or more report they too live paycheck to paycheck, up from 21% in 2008.

The survey was conducted online within the U.S. by Harris Interactive on behalf of CareerBuilder.com among 4,478 U.S. workers (employed full-time; not self-employed; non government) ages 18 and older between May 22 and June 10.

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