Provisional iTraxx lists confirm autos shake-out

As widely expected, the auto and industrial sectors look set to face the biggest shake up among European credit index constituents ahead of the March roll. Markit today distributed the provisional lists of constituents selected to make up the forthcoming iTraxx series 11 indices and LevX S4.

Names dropping out of Europe include eight auto and industrial names: Clariant, Continental, GKN holdings, Lafarge, Peugeot, Renault, Rentokil Initial and Valeo. Also dropping out of the index are consumer names Electrolux, Deutsche Lufthansa and Tate & Lyle.

Rolls Royce and Scania are among names coming into the new series, but other replacements are Adecco, Alstom, Anglo American, Ciba Holding, Solvay and Xstrata. Dealers recently changed selection rules to specifiy the index must include 30 names from autos and industrials combined, rather than 10 and 20 from each sector respectively.

Consumer replacements are Ahold, Sabmiller and Tomkins.

Clariant, Continental, GKN, Lafarge, Peugeot, Renault, Rentokil Initial and Valeo all enter the Crossover index, joining other new inclusions Corus, Fiat, Hanson, IKB Deutsche Industriebank, ISS Global, Porsche and Scandinavian Airlines System.

Leaving the Crossover index are Cable and Wireless, Ciba Holding, Colt Telecom, Fresenius, Havas, HeidelbergCement, Ineos, Infineon Technologies Holding, Kingfisher, Ladbrokes, LyondellBasell Industries, Ono Finance, Sol Melia, Rank Group, Thomson and Truvo Subsidiary.

LevX Senior thins to 50 constituents from 75. Removals include Gartmore, Ono and Thames Water. Seven removals from building supplies and chemicals include Ahlsell, Balta, BorsodChem, Flint, Frans Bonhomme, HC Starck and Materis.

LevX Sub will not roll into a fourth series.