London-based data provider Markit added a new tranche, the AJ tranche, to the off-the-run Markit CMBX indices on January 4.Markit added an AJ tranche - the most subordinate of the tranches rated AAA - 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 indexes as well.
The data company said the new tranche will provide enhanced trading opportunities to institutional investors seeking exposure to an additional credit class.
The Markit CMBX is a synthetic family of indexes based on US commercial mortgage-backed securities (CMBS). 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. A new series of CMBX is issued every six months.
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