Independent data and trade processing firm Markit launched the first tranched LCDX last Wednesday, with market players forecasting that a new crop of investors would take an interest in the product and create liquid trading conditions.

"We firmly believe these tranches will be popular," Stephen Waugh, a vice president at Deutsche Bank, said on a Markit conference call last Tuesday. Indeed, the "long-awaited" and "highly anticipated" index, as market players referred to it on the call, has already been quoted for several months, according to Citigroup.

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