Addition of AJ Tranche to Markit CMBX Indices.New Tranche Added to All Vintages to Enhance Trading Opportunities LONDON & NEW YORK -- Markit Group Limited ("Markit"), the leading provider of independent data, portfolio valuations and OTC OTC See: Over-the-counter. OTC See over-the-counter market (OTC). derivatives trade processing and owner of the Markit CMBX CMBX Commercial Mortgage Backed Securities Index index, announced today that an AJ tranche will be added to the off-the-run Markit CMBX indices on 4 January 2008. The new tranche will provide enhanced trading opportunities to institutional investors seeking exposure to an additional credit class. Markit added an AJ tranche - the most subordinate of the AAA AAA: see American Automobile Association. (Triple A) A common single-cell battery used in a myriad of electronic devices of all variety. Like its double A (AA) cousin, it provides 1.5 volts of DC power. When used in series, the voltage is multiplied. rated tranches - to the on-the-run Markit CMBX 4 index when it rolled in October last year. The new tranche has now been added to the off-the-run Markit CMBX 1, Markit CMBX 2 and Markit CMBX 3 indices as well. The Markit CMBX is a synthetic family of indices based on U.S. commercial mortgage-backed securities (CMBS CMBS See: Commercial Mortgage Backed Securities ) which provides investors with liquid, transparent exposure to CMBS of a unique vintage. Each CMBX index references a basket of 25 of the most recently issued CMBS deals. The seven index tranches reference bonds rated AAA, AJ, AA, A, BBB BBB A medium grade assigned to a debt obligation by a rating agency to indicate an adequate ability to pay interest and repay principal. However, adverse developments are more likely to impair this ability than would be the case for bonds rated A and above. , BBB- and BB respectively. Ratings are required from at least two of the following rating agencies: Fitch, Moody's and Standard & Poor's. A new series of CMBX is issued every six months. The CMBS reference obligations are selected using the following requirements: deals must have a minimum size of $700 million; they must be secured by at least 50 separate mortgages that are obligations of at least 10 unaffiliated borrowers; no more than 40% of the underlying mortgages can be secured by properties in the same state; and no more than 60% of the properties can be of the same property type. Licensed Dealers of the Markit CMBX include: Bank of America
Bank of America (NYSE: BAC TYO: 8648 ) is the largest commercial bank in the United States in terms of deposits, and the largest company of its kind in the world. ; Barclays; Bear Stearns; Calyon; Citi; Countrywide; Credit Suisse; Deutsche Bank; Goldman Sachs; JPMorgan; Lehman Brothers; Merrill Lynch; Morgan Stanley; Nomura International; RBS RBS Royal Bank of Scotland RBS Role Based Security RBS Rollback Segment RBS Rare Book School (University of Virginia) RBS Rural Business Cooperative Service RBS Ribosome Binding Site (genetics) Greenwich Capital; UBS UBS Union Bank of Switzerland UBS United Bible Societies UBS United Blood Services UBS United Buying Service UBS Used Bookstore UBS University Business Services UBS Universal Building Society (UK) UBS Ulaanbaatar Broadcasting System ; and Wachovia. About Markit Markit Group Limited is the leading provider of independent data, portfolio valuations and OTC derivatives trade processing to the global financial markets. The company receives daily data contributions from 90 dealing firms, and its services are used by almost 1,000 institutions to enhance trading operations, reduce risk and manage compliance. For more information, see www.markit.com |
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