This is the Markit ITRAXX Australia Index. It comprises the 25 most liquid and highly traded investment grade Australian entities in the market. Each of the 25 is given equal weighting. The index "rolls" every six months where the list of companies changes to reflect the market. It shows investors an average spread or margin for a five-year credit default swap over and above the benchmark bank bill swap rate (BBSW). It's a proxy of the perception of risk in the market. A rising number means the market perception of risk is rising, so investors demand a higher return to compensate for that risk, and falling spreads mean the opposite. The iTraxx is an important tool in assessing the movement and trends in credit spreads for the broader market. Prior to the GFC it averaged around 30bps At the commencement of the GFC it rose to above 200bps When Lehmann Brothers collapsed it rose to above 400bps At the height of the GFC it peaked at 450bps before retreating to about 100bps During the Greek crisis in 2010 it rose to 150bps During the European debt crisis in 2012 it rose to about 250bps Since April 2015 its risen from a low of 75bps to its current rate at 166bps https://www.quandl.com/data/WSJ/ITRXAUS-Markit-iTraxx-Australia-Index You can get the current rate by clicking on the table tab or the chart tab for the line graph view. Note the steepness in the incline over the past few months Save it to the a favourite's folder and check in on it on a weekly basis if you have concerns. It take all of about 10 seconds to check and give you peace of mind.
