Macquarie Bank will be included in the next rollover of the iTraxx Australia credit derivative index. Trading in default protection referenced to the bank has increased following a recent U.S. dollar debt issue. Buildings material company Rinker Group will also be included in the 25 name index. The two credits will replace John Fairfax Holdings and Suncorp-Metway.
The index is not as liquid as its global counterparts, but local practitioners say it is gain familiarity. "A lot of clients are using this as a hedging tool as well as watching it to get a flavor of how the market is moving," said Glenn Hodgeman, head of Australian dollar credit trading at Citigroup in Sydney.
