A dealer-client working group is forming to set up a loan credit-default swap index. It will be an offshoot of a bigger group, which is looking at creating documentation for single-name credit-default swaps on secured bank loans. Dealers involved in those discussions--the latest of which was held Wednesday--said a sub-group has not been formed and the project has not yet started, but it will be the next step after single-name documentation is finalized. One official said two LCDS indices--U.S. and European--are likely to begin trading by late summer or early fall.
LCDS Index Planned For Summer
