S&P Indices partners with Isda to assess credit quality of US and European banks

Gauging the quality of US and European banks

S&P Indices has collaborated with the International Swaps and Derivatives Association (Isda) to launch two credit default swap (CDS) indexes, providing industry participants with a daily measure of the credit quality of the US and European banking sectors.

Both indexes are equally weighted with no minimum ratings criteria for inclusion. "Institutional investors are definitely interested in the credit spreads of banks and financial institutions, particularly those of their major counterparties,"