IIC Launches iTraxx Total Return Indexes

International Index Company (IIC) has launched three iTraxx Total Return Indexes which measure the performance of holding the respective on-the-run iTraxx credit default swap (CDS) contracts with the remaining notional invested in money market instruments.

The iTraxx Total Return indexes comprise the Europe five-year, the HiVol five-year and the Crossover five-year. The indexes reflect a long credit position and invest in the on-the-run iTraxx series that they track.

Deutsche Bank subsidiary, db x-trackers is planning to launch a set of exchange-traded funds (ETFs) on the iTraxx indexes. BNP Paribas and AXA Asset Management, co-founders of the Easy ETF platform, are also planning to issue ETFs on the iTraxx.