How is the Barclays Capital Liquidity Cost Score calculated for a price-quoted bonds?

What will be an ideal response?

For bonds quoted in terms of price rather than bid-ask spread (referred to as price-quoted bonds), LCS is computed as
(Ask price − Bid price)/Bid price
Both LCS measures are computed based on simultaneous bid-ask spreads quoted by Barclays Capital's credit traders (both investment-grade and high-yield traders) to clients. The database is built from the hundreds of messages sent by its credit traders for standard institutional transactions bond-level bid-ask spread indications. Barclays Capital concedes that the LCS is not a perfect measure of liquidity.