LCDS Pricing
In North America, investor interest in loan CDS has grown tremendously. Volumes in the LCDS market have surged, with notional outstanding estimated to have grown over 300% to $40 billion in the last half of 2006. The recent launch of LCDX in North America has spurred interest and liquidity, particularly in the 100 constituents that comprise the index. We have already seen over $105 billion notional traded in little over a month’s time.
The launch of the iTraxx LevX, a European loan CDS index, in October 2006 spurred liquidity and investor interest in European single-name LCDS as well. LevX offers both a senior and subordinated version allowing investors flexibility in managing their risk profile.
Markit LCDS was launched in response to strong interest in the nascent LCDS market from dealers and institutional investors wishing to hedge their bank portfolios or gain synthetic exposure to secured loan issuers. With the assistance of our contributing dealers, we are now able to provide investors with the first independent source of daily loan CDS spreads suitable for mark-to-market.
The service provides same day and T+1 spreads for over 630 reference entities and tiers traded in the European and North American markets. Markit draws prices from contributing dealers and puts them through rigorous data cleaning algorithms to create a high-quality composite which is made available at 4:00pm daily in London and New York.
Contact us for information on how to access this new product functionality.
Easy Access to Prices
Spreads are available to clients over a secure, easy-to-use web interface or through automated download.Markit Offerings for LCDS
Clients can address their needs in pricing (both derivatives and cash), risk management, trade processing, and valuations through these related products:
- Markit Loans
- Markit RED Loans
- Markit Quotes
- Markit Trade Processing
- Markit Valuations
Also…
- LCDS Conferences - sponsored by Markit and participating dealers.
- LCDS Auctions - facilitates cash settlement in a credit event. Markit and CreditEx are co-administrators.
- Syndicated Secured List - helps determine potential deliverables and constituents of the LCDX. Markit is the administrator.
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