Markit has again cut down the number of reference obligations in its European loan CDS index— the LevX— for its next roll, highlighting the lack of liquidity that has plagued the LCDS market but giving dealers hope that the new series will prove more attractive.
It has dropped a further ten names from the already slimmed down LevX series 4 and added none, ensuring that only the most liquid names are included. The new index will reference CDS on loans from just 40 companies.
The series will roll on Monday (September 21). Traders