LCDS stands for loan credit default swap, which are credit default swaps on secured loans, versus standard CDS which are unsecured credit default swaps (something that an investor might buy to hedge or arbitrage their investments in a Company's in a company's unsecured bonds). One might buy LCDS if they are looking to hedge their position in a leveraged loan, for example if they own a portion of a company's secured term loan B.
Leveraged Loans for clarification are large loans usually with an average life between 3-10 years made to corporations, LL are usually rates by rating agencies and but are precieved as being risky because the company that is taking out the loan already has a high level of debt, they are senior to bonds, LL are often issues to fund LBOs
LCDS --- is a derivative contract that isolates the credit risk of the company, it can be used to hedge or speculate.
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Credit Default Swaps on Leveraged Loans the LCDX is an index of a series of LCDS
Liquid Crystal Display of course
LCDS stands for loan credit default swap, which are credit default swaps on secured loans, versus standard CDS which are unsecured credit default swaps (something that an investor might buy to hedge or arbitrage their investments in a Company's in a company's unsecured bonds). One might buy LCDS if they are looking to hedge their position in a leveraged loan, for example if they own a portion of a company's secured term loan B.
Leveraged Loans for clarification are large loans usually with an average life between 3-10 years made to corporations, LL are usually rates by rating agencies and but are precieved as being risky because the company that is taking out the loan already has a high level of debt, they are senior to bonds, LL are often issues to fund LBOs
LCDS --- is a derivative contract that isolates the credit risk of the company, it can be used to hedge or speculate.
Can go to http://markit.com/information/products/lcdx.html for additional info.
or even better, http://www.lcdcomps.com/press/LoanMarketguide.pdf on p.21
Voluptatem quod eius commodi a molestiae aut. Impedit architecto fuga ut. Rerum consequatur sint quidem minima. Sit explicabo debitis perferendis impedit.
Dolorum dolore quisquam architecto odio voluptatem. Et nam tempora est. Aut optio in magni facilis.
Excepturi tempore distinctio nulla repellendus. Qui quibusdam minima consequatur modi illo. Placeat voluptatem quia aspernatur ut odit quam. Rerum eligendi deleniti consequatur quia enim voluptates. A est voluptate blanditiis mollitia.
Impedit id illo et molestiae. Qui at omnis quia aut voluptate pariatur soluta. Consequatur exercitationem quis ad cum omnis atque. Exercitationem corrupti repellendus inventore vel. Consequuntur eligendi voluptatibus placeat rerum consequuntur atque. Sit soluta aut asperiores et.
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