21 October 2017
visit www.response.ncr.com

Markit adds AJ tranche to CMBX indices

04 January 2008  |  1780 views  |  0 Source: Markit

Markit Group Limited ("Markit"), the leading provider of independent data, portfolio valuations and OTC derivatives trade processing and owner of the Markit CMBX index, announced today that an AJ tranche will be added to the off-the-run Markit CMBX indices on 4 January 2008.

The new tranche will provide enhanced trading opportunities to institutional investors seeking exposure to an additional credit class.

Markit added an AJ tranche - the most subordinate of the AAA rated tranches - to the on-the-run Markit CMBX 4 index when it rolled in October last year. The new tranche has now been added to the off-the-run Markit CMBX 1, Markit CMBX 2 and Markit CMBX 3 indices as well.

The Markit CMBX is a synthetic family of indices based on U.S. commercial mortgage-backed securities (CMBS) which provides investors with liquid, transparent exposure to CMBS of a unique vintage. Each CMBX index references a basket of 25 of the most recently issued CMBS deals.

The seven index tranches reference bonds rated AAA, AJ, AA, A, BBB, BBB- and BB respectively. Ratings are required from at least two of the following rating agencies: Fitch, Moody's and Standard & Poor's. A new series of CMBX is issued every six months.

The CMBS reference obligations are selected using the following requirements: deals must have a minimum size of $700 million; they must be secured by at least 50 separate mortgages that are obligations of at least 10 unaffiliated borrowers; no more than 40% of the underlying mortgages can be secured by properties in the same state; and no more than 60% of the properties can be of the same property type.

Licensed Dealers of the Markit CMBX include: Bank of America; Barclays; Bear Stearns; Calyon; Citi; Countrywide; Credit Suisse; Deutsche Bank; Goldman Sachs; JPMorgan; Lehman Brothers; Merrill Lynch; Morgan Stanley; Nomura International; RBS Greenwich Capital; UBS; and Wachovia.

Comments: (0)

Comment on this story (membership required)

Related company news

 

Related blogs

Create a blog about this story (membership required)
visit www.vasco.comvisit www.atos.netvisit www.innotribe.com

Top topics

Most viewed Most shared
HSBC partners Bud for open banking trialHSBC partners Bud for open banking trial
10310 views comments | 22 tweets | 26 linkedin
Mastercard to roll out blockchain APIMastercard to roll out blockchain API
9654 views comments | 17 tweets | 24 linkedin
satelliteGates Foundation backs Ripple collaboratio...
9019 views comments | 13 tweets | 10 linkedin
IBM uses blockchain to improve cross-border payments processingIBM uses blockchain to improve cross-borde...
8099 views comments | 9 tweets | 17 linkedin
Sibos 2017: API or the highwaySibos 2017: API or the highway
7838 views comments | 10 tweets | 22 linkedin

Featured job

Competitive base, commission, benefits
London, UK

Find your next job