The iBoxx backers involved are ABN Amro, Barclays Capital, Citigroup, Deutsche Bank, Dresdner Kleinwort Wasserstein and SG – the investment banking arm of French bank Société Générale. The group, known as the iBoxx CDS group, are a subset of the banks involved in iBoxx. They act as market makers for credit-linked notes.
“This is an extremely positive development for the CDO market, which has traditionally been perceived as being illiquid,” the backers added. “The TriBoxx will provide additional depth and breadth to the structured credit market and offers investors a standardised and innovative product range.”