Markit announced today that it has put plans to launch a synthetic U.S. prime MBS index on hold, following lengthy discussions with market participants. The firm said it will re-assess launching the index in 2009.
This is not the companys first cancelled attempt this year to come to market with a new index. In September, Markit put on hold plans to launch the ABX.HE 05-2 index, a tradable synthetic index of U.S. sub-prime asset-backed securities that reference 20 RMBS deals issued in 1H05.
The new index was to be used by institutional investors as a hedging tool or to gain exposure to an earlier vintage of U.S. RMBS
The company cited market conditions as the reason behind the delay. A new launch date has not been determined.
Markit owns the credit derivative indices Markit ABX, Markit CDX, Markit CMBX, Markit iTraxx, Markit iTraxx LevX, Markit LCDX and Markit MCDX.