The official name of this index is LCDX.NA.8. It includes 100 equally weighted reference entities that are (relatively) liquid in the Loan CDS market.
Coupon: 120 bps (you get paid 1.20% of the notional to go long the index) paid quarterly.
The LCDX index trades on a dollar price. For example, on February 8th the index closed around 90.6. This means that it is trading at a 9.4% discount to par. If you wanted to go long the index, you would not only get the 1.20% in coupon per year but you would also receive 9.4% upfront for the discounted price.
Credit Events: When a Credit Event, such as bankruptcy or failure to pay, occurs on one of the names, if you are long the index you are responsible for the loss. The loss depends on the recovery rate of the name, which is determined in a market auction (click here for auction rules). For example, if the recovery rate was 75%, the loss would be 25%, so you would owe 25% * 1% weight of the name * your notional of trade.
The LCDX8 Constituents are:
Burlington Coat Factory
General Growth Properties
Las Vegas Sands
SunGard Data Systems
Toys R Us
United Air Lines