Markit And Creditex Announce Final Price Of British Vita 2nd Lien Loans' Auction

Markit and Creditex, in partnership with six major credit derivative dealers, introduce the results of a Credit Event Auction conducted to facilitate settlement of loan only credit default swap (LCDS) trades referencing British Vita 2nd lien loans. The final price

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Markit and Creditex, in partnership with six major credit derivative dealers, introduce the results of a Credit Event Auction conducted to facilitate settlement of loan-only credit default swap (LCDS) trades referencing British Vita 2nd lien loans.

The final price for British Vita 2nd lien loans for the purpose of settling LCDS transactions was determined to be 2.875%. Sellers of British Vita 2nd lien LCDS protection will therefore need to pay 97.125% of the amount of protection they sold.

This price was determined following the initial bidding period. This is because there was no open interest from market participants for physical settlement during the initial bidding period, removing the need for a second phase of the auction process.

Markit and Creditex are the official administrators of Credit Event Auctions, which enable market participants to cash settle credit derivative transactions.

L.D.

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