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5-year CDX NA IG index is quoted by a market maker as bid 170 bp, ask (offer) 175 bp. This index includes 125 North American
5-year CDX NA IG index is quoted by a market maker as bid 170 bp, ask (offer) 175 bp. This index includes 125 North American investment-grade companies. Suppose you want $800,000 of protection for each company.
- How much per year will you pay in CDS premia?
- When one of the 125 companies defaults, your annual premium payment will be reduced by how much?
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