[Verse 1]
When credit markets get complex and wide
Single swaps can't show the bigger tide
So we bundle fifty, hundred names together
Create an index, tracks through any weather
Investment grade or high yield junk bonds
These baskets mirror what the market wants
[Chorus]
CDS indices, diversified and clean
Track the credit pulse of the trading scene
CDX for North America's corporate debt
iTraxx for Europe, place your safest bet
Standardized contracts, liquid every day
Portfolio hedging in the modern way
[Verse 2]
Each name gets equal weight inside the pool
No single issuer makes you play the fool
When Company A defaults, the index adjusts
But ninety-nine others keep your portfolio robust
Roll dates come every six months like clockwork
New series launched when old ones need rework
[Chorus]
CDS indices, diversified and clean
Track the credit pulse of the trading scene
CDX for North America's corporate debt
iTraxx for Europe, place your safest bet
Standardized contracts, liquid every day
Portfolio hedging in the modern way
[Bridge]
Tranches slice the risk in different layers
Super senior, mezzanine for various players
Correlation drives the complex math
When credits move together down the path
First-to-default swaps magnify the fear
While basket swaps spread losses through the year
[Verse 3]
Mark-to-market daily, prices crystal clear
Benchmark spreads reveal what markets fear
Asset managers hedge their credit books
Pension funds diversify with calculated looks
From synthetic CDOs to correlation trades
These indices built the modern credit cascade
[Chorus]
CDS indices, diversified and clean
Track the credit pulse of the trading scene
CDX for North America's corporate debt
iTraxx for Europe, place your safest bet
Standardized contracts, liquid every day
Portfolio hedging in the modern way
[Outro]
Remember CDX and iTraxx by name
Diversification is the credit game
Fifty names are better than just one
Portfolio protection, get the job done