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Trac-x and iBoxx market indexes finally merge

After much hand wringing, the credit default swaps (CDS) indexes iBoxx and Trac-x finally consented to a full merger in late April. “The fact is the investment banks were spending time on a branding war instead of providing the best liquidity. Now customers will benefit,” observed one party involved in the merger.

Prior to the merger, many market-makers in the indexes were pushing for the two sides to come together. The Trac-x family of CDS indexes

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Credit risk & modelling – Special report 2021

This Risk special report provides an insight on the challenges facing banks in measuring and mitigating credit risk in the current environment, and the strategies they are deploying to adapt to a more stringent regulatory approach.

The wild world of credit models

The Covid-19 pandemic has induced a kind of schizophrenia in loan-loss models. When the pandemic hit, banks overprovisioned for credit losses on the assumption that the economy would head south. But when government stimulus packages put wads of cash in…

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