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Definition: Dow Jones CDX Indexes
Dow Jones CDX Indexes is a series of indices which tracks the North American and emerging market credit derivatives indexes. The basic purpose of the combined indexes is to track down the performance of various segments of credit derivatives so as to benchmark the overall return against the funds which invest in similar products.
This family of indices comprises of a basket of credit derivatives which are the representatives of certain segments such as North American investment grade credit derivatives, high volatility, high yield, high yield non-investment grades as well as the emerging markets as mentioned earlier.
Dow Jones CDX Indexes is nothing but a series of indices to track the credit derivatives of different countries in the world. Credit derivatives include swaps, options & other similar securities. The Dow Jones CDX Indices provide the benchmarks for an individual investor and the mutual fund which primarily invest in the credit derivatives to get information about which derivative markets are bullish and which are bearish at a particular time.
To explain in short, Dow Jones CDX Indexes is a type of tracking method used worldwide for the credit derivatives, based on a series of indexes. This tracking helps the investors in knowing about which of the derivative markets tend to be moving up or down at specific points in time.