Standard & Poor’s announced Monday the launch of a series of CDS Sovereign indices designed to track the credit default swap market for sovereign entities. The series includes S&P International Developed Nation Sovereign CDS Index and S&P Eurozone Developed Nation Sovereign CDS Index. Credit default swaps are over-the-counter, tradable credit derivative contracts that have generally been viewed as similar to insurance policies.
The International index emulates the country constituents and weightings included in the S&P/Citigroup International Treasury Bond (ex U.S.) Index in its construction. The Eurozone index similarly emulates the country constituents and weightings as the S&P Eurozone Government Bond Index in its construction.