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.
Access intelligence that drives action
To unlock this research, enter your email to log in or enquire about access
