Markit LCDS was launched in response to strong interest in the nascent LCDS market from dealers and institutional investors wishing to hedge their bank portfolios or gain synthetic exposure to secured loan issuers. With the assistance of our contributing dealers, Markit now provides investors with an independent source of daily loan CDS spreads suitable for mark-to-market.
The service provides same day and T+1 spreads for over 800 reference credits and tiers traded in the European and North American markets. Markit draws prices from over 10 contributing dealers and puts them through rigorous data cleaning algorithms to create a high-quality composite which is made available at 4:00pm daily in London and New York. Markit LCDS Pricing is integrated with Markit RED LCDS and therefore, enables institutions trading in LCDS to identify entity characteristics, credit agreements and loan tranche data.