What does iTraxx stand for?

What does iTraxx stand for?

iTraxx is a collection of indexes for the credit default swap market in Europe, Australia, and Asia. 1. These indexes allow market makers and active participants in the swaps market to take the other side of trades for a short period and provide liquidity in these markets.

Is iTraxx a benchmark?

The benchmark iTraxx Europe index comprises 125 equally-weighted European names. 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.

What is iTraxx Asia?

The iTraxx Asia ex-Japan index is a tradable index that allows market participants to take a view on the overall credit quality and direction of the underlying basket by trading one instrument. All iTraxx Indices are owned, managed, compiled and published by Markit Indices Limited.

What is iBoxx index?

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. The indices cover major and minor currencies in all key bond segments.

What is CDX 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. 9 The main advantage of index tranches relative to other CDOs is that they are standardised.

What is EM CDX?

The Markit CDX Emerging Markets Index (“CDX EM” or the “Index”) is composed of fifteen (15) sovereign reference entities that trade in the CDS market. Administrator. All CDX Indices are owned, managed, compiled and published by Markit (the “Administrator”).

What is iBoxx TRS?

iBoxx Standardized TRS contracts enable investors to gain or hedge exposure to the bond and leveraged loan markets easily and efficiently. They benefit from providing zero-tracking error to the underlying index and from strong liquidity due to their standardized trading structure.

Is Lqd a good investment?

LQD, given it was first to market in this space, is easily one of the most popular corporate bond ETFs. The ETF is notable for a broad portfolio of bonds from the Markit iBoxx USD Liquid Investment Grade Index, whose underlying liquidity may contribute tight tracking and subdued premiums / discounts.