Dealers agree iTraxx and CDX provisional changes

Markit has released provisional lists of constituent changes for the upcoming rolls of iTraxx and CDX corporate credit indices. The main indices, Europe and IG, see little change.

There are only two name-changes proposed for Europe, with auto name Compagnie Financiere Michelin (95/100bp) and consumer Imperial Tobacco (92/97bp) replacing Volvo (192/197bp) and Accor (120/126bp).

There is more movement internally within the index between its HiVol and LoVol baskets, with five further substitutions. EDP (106/111bp), Finmeccanica (92/97bp), OTE (97/102bp), Sainsbury (98/102bp) and Portugal Telecom International Finance (99/104bp) come into HiVol13, with BMW (87/90bp), Casino (88/92bp), Svenska Cellulosa (75/81bp), Telenor (58/63bp) and Veolia (79/84bp) swapping out.

Three changes are proposed for iTraxx Crossover 13, with Europe-leaver Volvo being joined by FCE Bank (428/455bp) and Sol Melia (470/498bp) as its new constituents, in place of Clariant (113/119bp), Pernod Ricard (128/138bp) and Porsche (101/110bp).

CDX IG14 adds Freeport McMoRan Copper & Gold (115/125bp) and SLM (380/397bp) in place of Wells Fargo (92/97bp) and International Lease Finance (4.25 points upfront). The latter name moves into CDX HY14, along with iStar Financial (23% upfront), MBIA (26% upfront) and Weyerhaeuser (153/158bp), while Celestica (105/125bp), CIT (November bankruptcy credit event), Fairfax Financial (380/403bp) and L-3 Communications (140/160bp) exit.