Bankruptcy sparks DJ CDX index settlement rethink

New Angles

pg15-gould-gif

The Chapter 11 bankruptcy filing by Michigan-based auto parts manufacturer Collins & Aikman in May has sparked a change in the settlement procedures for credit derivatives index trades concerning the firm. In mid-June, 13 dealers took part in an auction a fix a price for cash settlement on transactions involving the bankrupt company.

The move follows concerns that the high volume of index trades involving Collins & Aikman – part of the Dow Jones CDX North American high-yield credit de

To continue reading...

You need to sign in to use this feature. If you don’t have a Risk.net account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an indvidual account here: