Summary
- Major U.S. banks are pursuing the launch of a credit default swap (CDS) index in collaboration with S&P Global.
- The new CDS index could serve as a gauge of broader market credit risk and complement existing credit-market indicators.
- The index could be used for institutional investors' risk management and investment strategy, with its launch timing and methodology seen as key variables.
Forecast Trend Report by Period
Major U.S. banks are working on the launch of a credit default swap index in collaboration with S&P Global, as they seek to create a new credit gauge.
Walter Bloomberg reported on April 10 that U.S. banks are developing the CDS index with S&P Global.
Credit default swaps are derivatives that reflect the credit risk of bond issuers. The index could serve as a gauge of broader market credit risk.
Institutional investors could use the new index for risk management and investment strategy. It would also complement existing credit-market indicators.
Market participants are watching whether the new CDS index can offer a more systematic measure of credit-market trends. Its launch timing and methodology remain key variables.
JH Kim
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