S&P, ISDA launch CDS U.S. Financials 10, CDS European Banks 15 indexes

By Tali David

Minneapolis, March 20 - S&P Indices and the International Swaps and Derivatives Association, Inc. announced the launch of the S&P/ISDA CDS U.S. Financials Select 10 index and the S&P/ISDA CDS European Banks Select 15 index.

The S&P/ISDA CDS Sector index family seeks to reflect the credit default swap market for corporate credits, increasing transparency for market participants, according to a press release.

The two indexes concentrate on the most liquid and relevant names within the U.S. financial and European banking sectors, respectively. The indexes provide a targeted measure of counterparty risk in these market segments.

They target financial intermediaries that seek a standardized index to hedge broad financial counterparty risk. The indexes may be used as a basis for a credit default swap and can also be used to the track the overall health of the U.S. financial and European banking sectors, the press release said.

S&P Indices is part of New York-based McGraw-Hill Cos. ISDA is based in New York and represents participants in the privately negotiated derivatives industry.

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