Bankruptcy sparks DJ CDX index settlement rethink
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
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