Dow Jones Indexes today gave details of the portfolio for the new Dow Jones Trac-x Europe high-yield index. The index consists of the 25 most liquid European high-yield credit default swaps, and contains many well-known names such as British Airways, Cable & Wireless and Invensys.Trac-x was launched in April this year, with 38 indexes now available in this family. Dow Jones says $150 billion has been traded in Trac-x indexes to date.
US investment banks JP Morgan Chase and Morgan Stanley originally designed Trac-x. But, bowing to pressure from the market to hand over control of the indexes to a third party, the banks announced they had finalised terms to hand over development, marketing and sales control to Dow Jones last week.
More on Structured Products
Hedges required to lock in performance on constant currency terms impact product pricing
Product born in 1990s Japan's low yield environment set for global stage
Strict classification of structured products into 'complex' and 'non-complex' criticised
HNWs got burnt in the Lehman crisis and are still cautious over exposures
Sign up for Risk.net email alerts
Sponsored video: MarketAxess
Sponsored video: Tradeweb
Multifonds talks to Custody Risk on being nominated for the Post-Trade Technology Vendor of the Year at the Custody Risk Awards 2014
Sponsored webinar: IBM Risk Analytics
There are no comments submitted yet. Do you have an interesting opinion? Then be the first to post a comment.