Trading volume on the new LCDX, the North American index of loan CDS contracts, hit $11 billion on the first day of its launch. This figure represents a highly successful start for the new index, and exposes the enormous potential of loan derivative products. "On every front, the launch was a big success," says Lisa Watkinson, head of structured credit business development at Lehman Brothers. "It brings to the forefront issues we’ve thought long and hard about as regards structuring a product for both buyers and sellers."
The issues Watkinson refers to are those that continue...
