Index CDS trading nearly doubles as tariffs spook market
Turnover ebbed in single-name contracts as iTraxx and CDX volumes climbed rapidly last week
Trading of credit default swaps (CDSs) on Ice Clear Credit shifted sharply from single-name contracts to index instruments in the aftermath of the White House’s unveiling of new tariffs on April 2, a further sign of the announcement’s sweeping impact on credit markets.
After initially surging $3.2 billion (35%) on April 3, single-name CDS turnover slumped $4.8 billion (38.1%) the next day to $7.7 billion – the lowest since March 3. Although volumes rebounded at the start of last week, trading as
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