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Credit Signals

LEADING RISK'S SIGNALS FOR THE CREDIT MARKETS

The Leading Risk Indicator is a market-implied, forward-looking signal for investment decisions or risk management in the credit markets.

Each day, Leading Risk uses CDS spreads and the shape of the credit curves to derive the market's current view of implied risk of default and implied spread volatility for each entity. The current CDS spread curves are used to calibrate a structural model of default losses, and potential losses are determined based on implied volatility of market moves.

The signals and alerts that are produced result in a new form of sentiment indicator for the credit markets that is not explicitly evident from market observations.


ACCESS TO THE SIGNALS AND ALERTS

Leading Risk has chosen to make its predictive indicators and single-name alerts for the credit markets available through an alliance with Markit, through its Research Signals Platform, a suite of more than 400 investment factors which can be used by customers to evaluate the expected performance of stocks-based sentiment indicators.

For further information on accessing Leading Risk's signals and alerts through the Markit Research Signals Platform contact us, or contact Markit at sales@markit.com

Markit is a leading global diversified provider of financial information services. The company provides products that enhance transparency, reduce risk and improve operational efficiency. Customers include banks, hedge funds, asset managers, central banks, regulators, auditors, fund administrators and insurance companies. Founded in 2003, Markit employs over 3,000 people in 10 countries. www.markit.com

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