Markit Launches AJ Tranche

Markit Group said that an AJ tranche will be added to the off-the-run Markit CMBX indices today. The new tranche will offer trading opportunities to institutional CMBS buyers looking for exposure to an additional credit class. The firm added an AJ tranche, which is the most subordinate of the triple-A rated tranches,to the on-the-run Markit CMBX 4 index when it rolled last October. The new tranche is also now a part of the off-the-run Markit CMBX 1, Markit CMBX 2 and Markit CMBX 3 indices as well. The seven index tranches currently reference bonds that are rated AAA, AJ, AA, A, BBB, BBB- and BB. Ratings are needed from at least two of the three rating agencies. A new series of CMBX is issued every six months.