Markit, a financial information services company, has postponed the roll of the LCDX index into Series 11 pending the launch of a market standard non-cancellable single name loan credit-default swap (CDS) contract.
Loan CDS dealers are designing a non-cancellable single name loan CDS contract to enhance liquidity by eliminating uncertainty linked to the cancellability of the current market standard contract.
If and when market participants agree on a market standard non-cancellable single name loan CDS contract, Markit will integrate the language and characteristics of this contract into the Markit LCDX index.
D.C.