S&P Global and JPMorgan Chase have launched the CDX Financials (FINDX) index to track the private-credit market. This credit-default swap (CDS) index allows investors to hedge or short credit risk within a sector that now exceeds $3 trillion.
The index provides exposure to major private-credit fund managers including Apollo Global Management, Ares Management, and Blackstone. It also includes banks and insurers to meet rising investor demand for hedging tools.
Market participants are seeking protection against rising defaults and risks associated with leveraged loans. Bank of America, Barclays, and Goldman Sachs will serve as distributors for the new product.