Thomson SA

[dvlo]

Hello,

Can you guys help with this query I have of the CDS of Thomson SA? It is a constituent of the earlier series of the itraxx europe Index.

ISDA informs the market that Index trades would use the new RED Id for index tranche trading, after reversioning has occured. .Does anyone have any information on whether the new Red id should be used for the tranches of Thomson SA?

 

[Andy Nguyen]

After every credit/corporate event, the entity will have new Red and even new entity ticker name. Your data provider (likely Markit) will have all the info about when the change will take place.
For the iTraxx indices, Thomson was in iTraxx Europe S1 to S7, Hivol S4 to S7 and Crossover S8 to S11. These indices will split into two separate trades – an index ex-Thomson and a single name Thomson CDS contract that can then be exercised or not.

 

[dvlo]

ok thanks, but wuld the index tranches use the same RED?

Kind regards

 

[Andy Nguyen]

No, every time versioning occurs, the new index would have a new RED. I would have to look at the database to confirm but I'm pretty sure the tranches would logically have new RED as they now refer to the new version.

You may want to look at this document for more clarification
http://www.dtcc.com/downloads/legal/imp_notices/2009/derivserv/ds771.pdf

 

[dvlo]

Thanks your help is very much appreciated

 

[dvlo]

saying that, ISDA seems to indicate to continue trading tranches based on an index still containing THOMSON in itraxx europe indices....

please refer to the attached isda document...