Information services firm Markit is launching a new family of indices referencing CMBS issued since 2010. The Markit TRX.II indices will begin trading on Oct. 3.
“This is an exciting addition to Markit’s family of CMBS indices which already includes Markit CMBX, Markit TRX.NA and Markit iBoxx ABS," said Neil McPherson, managing director of indices at Markit. "This new index, which comes at a time when US CMBS issuance is experiencing a revival, will offer CMBS investors with an efficient hedging and investment tool provided by an independent index provider.”
The Markit TRX.II will make up a maximum of 25 'AAA' rated securities from 25 different CMBS transaction. Both private 144A and public deals are eligible for inclusion.
But, at launch, the index will mostly comprise of 144A deals. According to the press release from the firm, each quarter the index will be rebalanced to have recent qualifying issuance by replacing the oldest offerings in the index with newer transactions. The index will have the same contract structure as the existing Markit TRX.NA.