Story perspectives

S&P Launches CDX Financials Index to Hedge Credit Risk

4/11/2026

Summary

Story summary

S&P Dow Jones Indices is launching CDX Financials, the first CDS index to include BDC-linked swaps, to hedge credit stress in private credit markets.
The index tracks 25 North American financial firms, including banks, insurers, and business development companies (BDCs).
The launch follows redemption requests from non-traded private credit funds, raising borrower stability concerns.
Major banks, including Bank of America and Goldman Sachs, will sell the derivatives next week.

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Story summary

S&P Dow Jones Indices is launching CDX Financials, the first CDS index to include BDC-linked swaps, to hedge credit stress in private credit markets.
The index tracks 25 North American financial firms, including banks, insurers, and business development companies (BDCs).
The launch follows redemption requests from non-traded private credit funds, raising borrower stability concerns.
Major banks, including Bank of America and Goldman Sachs, will sell the derivatives next week.