Credit Rating Agency

Credit Default Swap Market Needs Central Clearinghouse: Fitch 

Corporate single-name and index credit default swaps (CDS) remained resilient in ’08 and so far in ’09, despite credit events, according to a credit policy special report released Thursday by Fitch Ratings. Initiatives to standardize the CDx market aim to make it even less susceptible to credit market events. One such initiative, the clearing of single-name contracts and indices through a central counter party, is a necessary first step in reducing overall concentrated risk, Fitch said.