(Bloomberg) -- The Chicago Mercantile Exchange will
begin trading credit derivatives on June 18, likely becoming the
first U.S. exchange to allow investors to bet on the ability of
companies to repay their debt.
The Merc will offer a futures contract tied to the
creditworthiness of 32 companies that investors consider among
the riskiest with investment-grade ratings. The contract is
modeled after credit-default swaps, the privately negotiated
contracts that trade in the over-the-counter market and now
cover an estimated $34.5 trillion in debt.
Read more at Bloomberg Bonds News
begin trading credit derivatives on June 18, likely becoming the
first U.S. exchange to allow investors to bet on the ability of
companies to repay their debt.
The Merc will offer a futures contract tied to the
creditworthiness of 32 companies that investors consider among
the riskiest with investment-grade ratings. The contract is
modeled after credit-default swaps, the privately negotiated
contracts that trade in the over-the-counter market and now
cover an estimated $34.5 trillion in debt.
Read more at Bloomberg Bonds News
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