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Trac-x and iBoxx market indexes finally merge

After much hand wringing, the credit default swaps (CDS) indexes iBoxx and Trac-x finally consented to a full merger in late April. “The fact is the investment banks were spending time on a branding war instead of providing the best liquidity. Now customers will benefit,” observed one party involved in the merger.

Prior to the merger, many market

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The wild world of credit models

The Covid-19 pandemic has induced a kind of schizophrenia in loan-loss models. When the pandemic hit, banks overprovisioned for credit losses on the assumption that the economy would head south. But when government stimulus packages put wads of cash in…

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