Proposed changes, such as a new one-year minimum and minimum size requirements, will impact its ABS indices, Merrill Lynch's Bond Indices group said today.
Merrill is looking to institute on all domestic ABS one-year minimum remaining term-to-final stated maturity. Also proposed is a minimum size requirement for its U.S. Fixed Rate Asset Backed Index and its U.S. Floating Rate Asset Backed Index. These include at least a $250 million original deal size, a remaining deal size of at least 10% of the original deal size and tranche sizes of $50 million for seniors and $10 million for mezzanine and subordinated tranches.
Clients were encouraged to give feedback to the index group about the proposed rules. A final decision will take effect at the end of the year.