Loan CDS index shrugs off delays to register $11 billion trading on day one

After resolving documentation issues, the LCDX index of loan credit default swaps finally launched in the US to overwhelming demand

LCDX, the long-awaited index of North American loan credit default swaps (LCDS), launched on May 22, following the resolution of documentation problems by the International Swaps and Derivatives Association.

The new index is run by CDS IndexCo, a consortium of 16 banks, and the valuation company Markit, which selected the basket of 100 default swaps referencing first-lien loans.

Trading exceeded $11 billion notional on the first day and by 4pm the initial fixed coupon of 120 basis points had

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