Synthetic Index

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Synthetic Index

The purchase of futures contracts and/or options such that one's exposure and potential payout resemble that of an index. One creates a synthetic index if one believes doing so will result in a higher return than a security tracking a real index.
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Prior to Amherst Securities, he was a Director at Bank of America Merrill Lynch ("BAML"), trading strip IOs and POs, synthetic indices, excess servicing rights, and structured derivatives.
The CDX indices are the most widely traded synthetic indices in North America and the universe of traded names in the credit derivatives market has grown dramatically since the launch of CDX.
NEW YORK -- CDS IndexCo LLC ("CDS IndexCo"), a consortium of 16 investment banks that combined for the creation of tradable synthetic indices, and Markit Group Limited ("Markit"), the leading provider of independent data, portfolio valuations and OTC derivatives trade processing, announced today that the roll of ABX.