Investors set to switch options from Crossover to Sub Fin on roll

By Hazel Sheffield
10 Sep 2014

Credit options on iTraxx Crossover and iTraxx Senior Financials indices may migrate to the subordinated financials index after the roll to series 22, due to new names in Crossover and greater protection in SubFin offered by new financials definitions.

“I think you’ll see a lot of options migrating to SubFin,” Saul Doctor, credit analyst at JPMorgan in London, told GlobalCapital. 

Subordinated financials will receive greater protection under new credit event definitions that come into force on Sept. 22 in response to credit events such as SNS Reaal. In ...

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