<t>Interestingly enough though, one can lately observe a tendency of the big houses forming sales groups that are dedicated to hedge fund clients. Credit derivatives HF sales and Structured Products HF sales seem to be very popular groups for example. And several people that are staffing them have a...

Because in a plain vanilla CDS when default (or a credit event) occurs, the contract is terminated, while in the case of the index, the contract carries on.

Does anybody know how to calculate the eqivalent price for the CDX/ITraxx index (as a % of par value) given the coupon (spread) it pays? I am not sure it is a straightforward CDS calculation. Any documentation would be more than welcome.