Independent Auction determines Collins & Aikman price, $43.625, to be used to cash settle DJ CDX Index Trades
-- ISDA-sponsored Alternative Eases the Operational Burdens on Both Buy- and Sell-Side Participants Settling DJ CDX Index and Tranche Trades --
-- Collins & Aikman Products Co. was Removed from the Dow Jones CDX North America High Yield Indexes as a Result of the Bankruptcy Announcement of its Parent Company --
NEW YORK, June 14, 2005 - CDS IndexCo LLC, the owner of the Dow Jones CDX family of credit derivative indices, today announced the auction results to determine the recovery value of Collins & Aikman Products Co. debt, pursuant to the ISDA 2005 Index Protocol. The auction of Collins & Aikman Products Co. debt, 10.75% maturing on 12/31/2011 took place at 10:00 A.M. EST today and produced a value of $43.625. Auction details including participants, submitted prices and methodology can be seen at www.creditfixings.com.
The final auction price was achieved through the submission of live market prices by 13 member banks in a process jointly managed and developed by Markit, the administrator for the DJ CDX Indexes and the leading industry source for independent pricing and valuations, and Creditex, the leading provider of electronic execution services in the credit derivatives market. This same Tradable Credit Fixings methodology is used to create a Fixing on the European iTraxx indices every week in conjunction with 19 dealers. 448 adhering parties have elected to take advantage of the cash settlement mechanism in relation to all index and tranche products affected by the bankruptcy filing of Collins & Aikman Corporation.
The International Swaps and Derivatives Association (ISDA) created and ran the protocol (2005 CDS Index Protocol) which governs settlement issues for all parties concerning Collins & Aikman Products Co. A draft of the protocol document can be viewed at www.djindexes.com or go to www.markit.com for more information.
Journalists may also e-mail questions regarding this press release to:
PR-Indexes@dowjones.com or contact Sybille A. Reitz, Dow Jones Indexes Public Relations, +1-212-597-5735
Note to Editors:
About CDS IndexCo
CDS IndexCo is a consortium of 16 investment banks which are licensed to be market makers in the Dow Jones CDX indexes. The market makers include: ABN AMRO, Bank of America, Barclays Capital, Bear Stearns, BNP Paribas, Citigroup, Credit Suisse First Boston, Deutsche Bank, Goldman Sachs, HSBC, JPMorgan, Lehman Brothers, Merrill Lynch, Morgan Stanley, UBS, and Wachovia.
About Dow Jones Indexes
Dow Jones Indexes is a premier global provider of investable indexes, including the Dow Jones Averages, the Dow Jones Global Titans 50, the Dow Jones Asian Titans 50, the Dow Jones Sector Titans, the Dow Jones Country Titans Indexes and is co-owner of the Pan-European Dow Jones STOXX Indexes. Dow Jones Indexes is part of Dow Jones & Company, which publishes the world's most vital business and financial news and information.
In addition to Dow Jones Indexes, Dow Jones & Company (NYSE: DJ; dowjones.com) publishes The Wall Street Journal and its international and online editions, Barron's and the Far Eastern Economic Review, Dow Jones Newswires, MarketWatch and the Ottaway group of community newspapers. Dow Jones is co-owner with Reuters Group of Factiva, with Hearst of SmartMoney and with NBC Universal of the CNBC television operations in Asia and Europe. Dow Jones also provides news content to CNBC and radio stations in the U.S.
Markit is the leading industry source for asset valuation data and services supporting independent price verification and risk management in global financial and energy markets. Founded in 2001, the company is an independent enterprise with which the world's leading financial institutions and energy traders work strategically to create price transparency. Today, Markit enjoys the sponsorship of 13 financial institutions who manage assets in excess of $10 trillion, and data contribution relationships with over 45 dealing firms. Markit has designed, launched and acquired over 20 financial data services which are now used by over 300 institutions globally. Areas of product expertise and service include an independent valuation perspective on credit default swaps, syndicated loans and OTC derivatives (credit, equity, FX, rates, energy, power, metals and structured products), as well as dividend forecasting and index and ETF management.
Founded in 1999, Creditex is the global market leader in e-trading of credit derivatives. In 2005, Creditex pioneered the first Tradable Credit Fixings, a milestone in bringing additional confidence and transparency to the market by providing a standard benchmark and settlement rate. The firm is also leading the industry in "straight-through processing" initiatives, allowing its growing client base to reduce operational risk and transaction costs. Having received numerous accolades in leading financial media including Credit, Euromoney, Forbes, Institutional Investor and Risk, Creditex?s technology continues to set the standard for innovation in the credit derivatives market. For more information, visit www.creditex.com