Salomon Brothers World Equity Index (SBWEI)

What Was the Salomon Brothers World Equity Index (SBWEI)?

The Salomon Brothers World Equity Index (SBWEI) was an index that deliberate the performance of equity securities from both domestic and international markets that comprised of companies with a float of no less than $100 million.

This index does not exist anymore. Salomon Brothers was acquired by Travelers in 1998, which accordingly merged with Citigroup in 1999 where Salomon became Salomon Smith Barney. Then in 2003, Standard and Poor's acquired Salomon Smith Barney's global benchmark index business from Citigroup and retired the SBWEI index.

Understanding Salomon Brothers World Equity Index

Salomon Brothers World Equity Index was an index that followed stocks in publicly traded companies worldwide. The SBWEI remembered companies for which the total number of shares accessible for trade was worth no less than $100 million.

The SBWEI utilized a top-down approach while assessing companies, and every security inside the SBWEI index was weighted by its float. Float alludes to the number of a corporation's shares that are outstanding and accessible for trading by the public, excluding restricted stock. A stock's volatility is contrarily connected with its float. Each company addressed in the SBWEI was weighted by the total value of its shares that are accessible for trade.

At its level, the SBWEI included securities from in excess of 6,000 companies situated in 22 distinct countries.

Salomon Brothers: A Brief History

The Salomon brothers were Arthur, Herbert, and Percy Salomon, who established Salomon Brothers in 1910. Salomon Brothers was one of the largest Wall Street investment banks. Salomon Brothers gave a large number of financial services and laid out its name in the financial markets through its fixed-income trading department.

Throughout the long term Salomon Brothers went through numerous mergers, acquisitions, and changes. In 1981, Salomon Brothers was acquired by Phibro Corporation and became known as Phibro-Salomon. In 1997, the bank merged with Smith Barney, a subsidiary of Travelers Group, to form Salomon Smith Barney. Quickly following the Travelers Group merger, the bank merged with Citigroup, where Salomon Smith Barney filled in as the investment banking arm. In 2003, Salomon Brothers adopted the Citigroup name.

Numerous investors viewed Salomon Brothers as one of the best multinational investment banks. The financial institution was part of what was known as the bulge bracket, which remembers the companies for an underwriting syndicate. Bulge bracket is likewise a term for the most profitable global investment banks in the world whose banking clients are typically large, compelling institutions, corporations, and legislatures.

Writer Michael Lewis reported the Salomon Brothers' rise and fall in his 1989 book, Liar's Poker. Lewis' book meticulously describes the high-pressure bond trading culture at Salomon Brothers, which has motivated the famous perspective on Wall Street during the 1980s and 1990s as a heartless jungle gym for those in wild quest for profit.

Features

• The index was covered in the mid 2000s after S&P acquired the indexing unit of Salomon Smith Barney.
• The index followed in excess of 6,000 stocks from 22 unique countries.
• The Salomon Brothers World Equity Index (SBWEI) was a global equity index sent off during the 1980s.