What is CDX investment grade?

What is CDX investment grade?

The Credit Default Swap Index (CDX) is a benchmark index that tracks a basket of U.S. and emerging market single-issuer credit default swaps. The CDX is also a tradable financial product that investors can use to gain broad exposure to the CDS market.

What is a CDX Series?

CDX indices are a family of tradable credit default swap (CDS) indices covering North America and emerging markets. CDX covers multiple sectors, including: CDX North American Investment Grade. CDX North American Investment Grade High Volatility.

How does CDX IG work?

The CDX index rolls over every six months, and its 125 names enter and leave the index as appropriate. 3 For example, if one name is upgraded from “below investment grade” to IG, it will move from the HY index to the IG index when the rebalance occurs. The basket is made up of 100 names.

What is CDS tranche?

CDS index tranches are synthetic collateralised debt obligations (CDOs) based on a CDS index, where each tranche references a different segment of the loss distribution of the underlying CDS index. This typically includes one or more investment grade classes and an equity (first loss) tranche.

What does CDX stand for?


Acronym Definition
CDX Apa Rated Plywood Sheathing Exposure 1 (construction plywood)
CDX Control and Direction Exercise
CDX Counterdrug Executive Secretariat
CDX CS ChemDraw Drawing (file extension)

What is CDX IG?

Markit’s North American Investment Grade CDX Index, or the CDX. NA. IG Index (the “IG Index”), is composed of one hundred twenty five (125) of the most liquid North American entities with investment grade credit ratings that trade in the CDS market.

What is Red CD code?

RED codes are used to confirm trades on MarkitSERV and other trade matching and clearing platforms, facilitating straight-through processing. Counterparties can rapidly agree on transactions and have confidence in the integrity of the underlying CDS reference data.

Is tranche A French word?

Finance and Tranche In French, tranche means “slice.” Cutting deeper into the word’s etymology, we find the Old French word trancer, meaning “to cut.” Tranche emerged in the English language in the late 19th century to describe financial appropriations.

What’s the difference between CDX and CCX plywood?

Additionally, CDX is made with 4-ply across all thicknesses, whereas CCX is more structurally sound with 5-ply and 6-ply due to its thicker thicknesses. But ultimately, and regardless of thickness, CCX is a better product for having a higher quality veneer, and fewer voids in the core by the process it’s manufactured.

Back To Top