Testing times in the search for alpha
FX moves to centre stage
November 2007
by Alex Chambers and Jethro Wookey
To include more than one recipient, please separate each email address with a semi-colon ';'
You may email your comment to a friendTo include more than one recipient, please separate each email address with a semi-colon ';'
Markit and Creditex held the first-ever LCDS credit event auction on October 23. The duo were the official administrators for the auction of US video store chain Movie Gallery’s defaulted contracts. Establishing a cash settlement price via an auction avoids difficulties arising from the fact that many contract holders might not have a position in the loans underlying CDS contracts.
Movie Gallery was also a constituent of the LCDX, the credit default swap index referencing US leveraged loans. Previous CDS auctions have referenced bonds.
If more people die sooner because they’re really fat, it should help alleviate the funding pressures that some pension funds have been experiencing recently.