Markit will expand its Markit Iboxx family of cash bond indices with the launch of the Markit Iboxx ABS index in the 3Q10, the firm announced today.
The index will track the performance of the European ABS market and will help users better understand available returns and measure the relative performance of their portfolios, Markit said.
The rules-based index will draw its pricing from multiple dealer price contributions, explained the firm. Nineteen financial institutions have already agreed to contribute bond prices to Markit to support the system.
Independent buy-side and sell-side advisory committees will guide index functions and advancements, Markit ensured.
“We are delighted to build on the success of our Markit iBoxx indices and expand into the ABS market,” said Niall Cameron, Markit’s executive vice president. “The Markit iBoxx indices are amongst the world’s leading indices for product structuring and risk management and we will continue to expand our coverage across the fixed income asset class."
Markit is a global financial information services company.