DEFINITION of 'iTraxx'

A group of international credit derivative indexes that are monitored by the International Index Company (IIC). The credit derivatives market that iTraxx provides allows parties to transfer the risk and return of underlying assets from one party to another without actually transferring the assets. iTraxx indexes cover credit derivatives markets in Europe, Asia and Australia.


The credit derivatives market is extremely large with notional amounts totaling $4.5 trillion in 2004. The iTraxx indexes were developed in order to bring greater liquidity, transparency and acceptance to the credit default swap market. These indexes are used by various licensed market makers, which include large investment banks such as Goldman Sachs, Citigroup, Deutsche Bank and UBS.

  1. Swap

    A derivative contract through which two parties exchange financial ...
  2. Credit Default Swap - CDS

    A particular type of swap designed to transfer the credit exposure ...
  3. Investment Bank - IB

    A financial intermediary that performs a variety of services. ...
  4. Credit Derivative

    Privately held negotiable bilateral contracts that allow users ...
  5. Market Maker

    A broker-dealer firm that accepts the risk of holding a certain ...
  6. Default Risk

    The event in which companies or individuals will be unable to ...
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