Markit Group launches new CMBS index for deals issued since 2010

By E. Janene Geiss

Philadelphia, Sept. 19 - Markit Group Ltd. announced the launch of a new family of indexes referencing the Commercial Mortgage Backed Securities issued since 2010.

The Markit TRX.II indexes will start trading on Oct. 3.

The indexes will comprise of a maximum of 25 AAA rated securities from 25 different CMBS deals.

Private and public deals are eligible for inclusion, but at launch the index will primarily consist of Rule 144A deals.

This index is a new addition to the family of CMBS indices, which already includes the Market CMBX, Markit TRX.NA and Markit iBoxx ABS.

"This new index, which comes at a time when U.S. CMBS issuance is experiencing a revival, will offer CMBS investors with an efficient hedging and investment tool provided by an independent index provider," said Neil McPherson, managing director of indices at Markit, in a news release.

Each quarter the index will be rebalanced to include recent qualifying issuance by replacing the oldest deals in the index with newer deals.

The index will have the same contract structure as the existing Markit TRX.NA.

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