What is an index tranche?

CDS index tranches are synthetic collateralised debt obligations (CDOs) based on a CDS index, where each tranche references a different segment of the loss distribution of the underlying CDS index.

How does a credit default swap index work?

A credit default swap index is a credit derivative used to hedge credit risk or to take a position on a basket of credit entities. Credit-default swap indexes are benchmarks for protecting investors owning bonds against default, and traders use them to speculate on changes in credit quality.

What is a credit default swap CDS and where do you use it?

A credit default swap (CDS) is a financial derivative or contract that allows an investor to “swap” or offset his or her credit risk with that of another investor. For example, if a lender is worried that a borrower is going to default on a loan, the lender could use a CDS to offset or swap that risk.

How are CDS priced?

The price of a credit default swap is referred to as its “spread,” and is denominated in basis points (bp), or one-hundredths of a percentage point. For example, right now a Citigroup CDS has a spread of 255.5 bp, or 2.555%. That means that, to insure $100 of Citigroup debt, you have to pay $2.555 per year.

What is iTraxx crossover?

The iTraxx Crossover index comprises the 75 most liquid sub-investment grade entities. Total Return indices are calculated and published hourly for iTraxx Europe, Asia and Crossover. These indices measure the performance of the respective on-the-run iTraxx CDS contracts. Asia & Emerging Markets.

What is CDX IG?

The credit default swap index (CDX) is itself a tradable security: a credit market derivative. Currently, the CDX contains 125 issuers and is broken down by two different types of credits: investment grade (IG) and high yield (HY).

Can I buy a credit default swap?

A large investor or investment firm can simply go out and buy a credit default swap on corporate bonds it doesn’t own and then collect the value of the credit default swap if the company defaults—without the risk of losing money on the bonds.

Are credit default swaps still legal?

Currently, under the terms of the CDS contracts, these engineering schemes are not prohibited—but they have roiled the credit derivatives markets as market participants and regulators debate whether and how to address them.

Do credit default swaps still exist?

The payment received is often substantially less than the face value of the loan. Credit default swaps in their current form have existed since the early 1990s, and increased in use in the early 2000s. CDSs are not traded on an exchange and there is no required reporting of transactions to a government agency.

What is CD short for?

CDs are small plastic disks on which sound, especially music, is recorded. CDs can also be used to store information which can be read by a computer. CD is an abbreviation for ‘compact disc. ‘ The Beatles’ Red and Blue compilations are issued on CD for the first time next month.

What is iBoxx index?

iBoxx indices offer broad benchmarking and liquid tradable index solutions that track bond markets globally. iBoxx are independent bond indices which are based on multi-source pricing for improved accuracy. They serve as tools for passive or active portfolio management, ETFs and structured products.

What is iTraxx Main?

Trading. The most widely traded of the indices is the iTraxx Europe index, also known simply as ‘The Main’, composed of the most liquid 125 CDS referencing European investment grade credits, subject to certain sector rules as determined by the IIC and also as determined by the SEC.

What kind of truck is the 2011 Ford?

Ford’s full-size heavy-duty pickup, the 2011 Ford F-250 Super Duty recieves new powetrain options, increased towing capacity, and a redesigned exterior. Ford’s entry-level to the dual rear-wheel pickup truck, the 2011 Ford Super Duty F-350 DRW pulls with a selection of a new gasoline and turbodiesel engines.

What kind of engine does a 2011 Ford Ranger have?

2011 Ranger Specifications Overview Specifications: TECHNICAL SPECIFICATIONS. 2011 FORD RANGER TECHNICAL SPECIFICATIONS. POWERTRAIN . 2.3L DOHC I­4. 4.0L SOHC V­6. Engine type . I­4, aluminum block, aluminum head. V­6, iron block, aluminum alloy head

What kind of car is the 2011 Ford Explorer?

Entering a new chapter after 20 years in the Ford lineup, the all-new 2011 Ford Explorer matures to car-based utility vehicle while maintaining its premium touches. The top-selling full-sized pickup truck built in North America, two fuel efficient V-6s and reworked V-8 engine grouping makes the 2011 Ford F-150 an even more valuable tool.

What are the specifications of a 2011 Ford E series?

2011 E-Series Specifications Passenger Wagon Passenger Wagon Passenger Wagon Van Van E­150 E­350 E­350 E­150 E­150 Reg SD SD Reg Ext. Reg. Ext.