My colleague Agnes Crane has a good post up about the Justice Department’s investigation into potential pricing irregularities in the credit default swaps market. And she’s right in questioning whether this investigation will add up to much.
Lots of posts and articles are circulating about the Department of Justice’s investigation into the derivatives market and specifically the dealers that own Markit – the administrator of popular credit default swaps indexes and aggregator of CDS prices.
This isn’t such a good sign for developed nations. Markit, the administrator of popular credit derivative indexes, has created another long-winded index, the Markit iTraxx SovX G7, to track the ups and downs in default risk perceptions of elite industrialized nations.