It Looks Like Free Money Is Available in the Credit Market
A distortion in derivatives.
Shades of shamu
Photographer: James Forte/National GeographicThis article is for subscribers only.
A credit market curiosity, presented for your enjoyment.
Here is so-called 'skew' in Markit's North American High Yield CDX, a derivatives index tied to the credit default swaps (CDS) of 100 junk-rated companies and one of the most liquid credit-trading instruments around.