Markit, a leading, global financial information services company, today announced that it will launch the first credit default swap (CDS) index referencing Latin American corporate debt. The Markit CDX LatAm Corporate Index will enable investors to gain or hedge exposure to Latin American corporate bonds or CDS.
The index, which will launch in early summer, will reference corporate issuers from multiple industry sectors in Central and South America and the Caribbean. Inclusion in the index is based on the liquidity of a company’s CDS and the amount of its debt in the market.
The launch of the index coincides with growing investor demand for Latin American debt. Emerging markets, especially those in Latin America, are becoming more attractive to investors looking for relatively high yields compared with those in the US and Europe. Also, Latin American economies have benefited in recent years from strong sovereign balance sheets and disciplined monetary policies.
Neil McPherson, managing director and Head of North American Indices at Markit, said: “We are pleased to expand our CDX family of indexes to Latin America, where we see an increasing level of client activity. Investors looking at the region see widespread examples of strong economic performance, improving balance sheets and credit-rating upgrades. Introducing a CDS index for Latin America is a natural progression for the capital markets in the region. ”
The Markit CDX indices cover North America and emerging markets and include seven main indices. Daily closing prices for the Markit CDX LatAm Corporate Index will be published on www.markit.com upon launch.
You Might Also Like...
- Neptune Continues Expansion with Integration into Fidessa's Buy-side OMS Platform
- Quantifi Develops Commodity Credit aCounterparty Risk Management Solution with Leading Global Commodity Firm
- Object Trading Platform Goes Live at TMX Group’s Co-Location Centre for Montréal Exchange Access
- CBOE Holdings Takes Equity Stake In Eris Exchange Holdings And Companies Announce Strategic Product Partnership
- CFTC Issues Final Cross-Border Margin Rule
- Credit Suisse Leader in Global Cleared Derivatives Selects FIS Derivatives Utility
- Clearing Members Analyze the Resolution of Central Counterparties in New White Paper
- SA-CCR - Understanding Implementation Challenges to Create an Effective Adoption Plan