Fitch Releases Analysis on Recent Roll of DJ.CDX.NA.HY CDS Index.NEW YORK New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of -- Fitch announced today the release of its analysis on the new roll of the DJ.CDX CDX Companion Dog Excellent (AKC Obedience Title) CDX Cyber-Defense Exercise CDX Central Data Exchange CDX Community Development Exchange (UK community development organization) CDX Commercial Data Exchange .NA.HY credit default swap Credit Default Swap A swap designed to transfer the credit exposure of fixed income products between parties. Notes: The buyer of a credit swap receives credit protection, whereas the seller of the swap guarantees the credit worthiness of the product. (CDS) index from Series 4 to Series 5. Consisting of 100 reference entities, the DJ.CDX.NA.HY CDS index allows investors to gain exposure to various tranches Tranches A piece, portion or slice of a deal or structured financing. This portion is one of several related securities that are offered at the same time but have different risks, rewards and/or maturities. "Tranche" is the French word for "slice". of a diversified portfolio of the most liquid high yield corporate reference entities. Monthly credit assessments of various risk tranches and supporting analytics are available exclusively on Fitch's credit derivatives Credit Derivative Privately held negotiable bilateral contracts that allow users to manage their exposure to credit risk. Credit derivatives are financial assets like forward contracts, swaps, and options for which the price is driven by the credit risk of economic agents (private web site, www.fitchcdx.com. The new roll was effective on Oct. 6, 2005, with 5 1/4 and 10 1/4 year maturities. The credit risk of the DJ.CDX.NA.HY Series 5 index is broadly similar to that of the Series 4 index as the same weighted average rating of 'B+/B' has been maintained as in the Series 4 pool. Further, Fitch's credit assessment of all the tranches has remained consistent since the last roll. There have been six reference entity deletions and six additions made to reflect recent dealer liquidity polls. The list of the excluded and included reference entities is displayed below. The top three industry concentrations in the DJ.CDX.NA.HY Series 5 index are: Energy (12.00%), Automobiles (11.00%), and Broadcasting/Media/Cable and Telecommunications (8.00% each). The top three concentrations of the DJ.CDX.NA.HY Series 4 indices were: Energy (13.00%), Telecommunications (11.00%), and Automobiles (9.00%). Exclusions -- Crown Castle International Corp. -- Collins & Aikman Products Co. -- Cummins Inc. -- Corning Inc. -- Panamsat Corp. -- Premcor Refining refining, any of various processes for separating impurities from crude or semifinished materials. It includes the finer processes of metallurgy, the fractional distillation of petroleum into its commercial products, and the purifying of cane, beet, and maple sugar Group Inc. Inclusions -- Eastman Kodak Co. -- Ford Motor Co. -- General Motors Corp. -- Liberty Media Corp. -- Lear Corp. -- Sungard Data Systems Inc. About FitchCDx.com FitchCDx.com is an integrated web-platform providing market-oriented, advanced analysis and data for the credit derivatives market - consolidating all of Fitch Ratings' analysis and research on credit derivatives. FitchCDx gives users unique access to a combination of market information and fundamental analysis. FitchCDx.com users can access the DJ.CDX.NA.HY analytics under 'Interactive Analytics'. Fitch's rating definitions and the terms of use Terms of Use are rules set up by the owner of an intellectual property or service to govern how they may be legally used. In many cases, terms of service are used as a contractual agreement between a company and users of a service they provide. of such ratings are available on the agency's public site, www.fitchratings.com. Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures Policies and Procedures are a set of documents that describe an organization's policies for operation and the procedures necessary to fulfill the policies. They are often initiated because of some external requirement, such as environmental compliance or other governmental are also available from the 'Code of Conduct' section of this site. |
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