The S&P/ISDA CDS U.S. Homebuilders Select 10 Index has seen a -45% drop in spread YTD. For the month this sector led the way moving down an additional 37bps from its August month end value of 226bps. For a $1 million investment that would be a move of $15,600 (YTD). This index of a select number of reference entities contains DR Horton, Home Depot KB Homes Lennar Masco, MDC, Mohawk Pulte, Ryland Group and Toll Brothers. The issuers presently range in credit rating from A- to B with the largest percent (35%) rated BB-.
The Index is a sub-index of the S&P CDS U.S. Homebuilders Sector index. The Select 10 Index seeks to track the performance of the most liquid reference entities in the Homebuilders Sector Index. The index is priced daily using the 5 year CDS contract on the underlying reference entities included in the index.