A group of dealers were meeting as DW went to press to discuss the creation of a loan credit-default swaps index. Single-name LCDS trading has started to take off in advance of standardized documentation being published by the International Swaps and Derivatives Association and the Loan Syndications and Trading Commission. That contract is expected to be finalized in coming weeks and an index is expected to be trading by summer, panelists said. Sherri King, managing director and principal in credit derivatives structuring and trading at Bear, said the next steps in the LCDS market will be tranching a future index and creating a synthetic collateralized loan obligations market.
