Markit, a global financial information services company, has launched its Markit CMBX.NA.AM sub-indices.
The new sub-indices reference commercial mortgage-backed securities (CMBS) that sit between the CMBX.NA.AJ and CMBX.NA.AAA tranches in the capital structure and were originally rated AAA.
The creation of a liquid, tradable index referencing AM securities is expected to bring additional transparency to the pricing of the existing CMBX indices, as well as other CMBS, Markit says. The AM tranche will be added to all existing series of the Markit CMBX family of synthetic commercial real estate indices.Â Â
The sub-indices will only reference deals in the current Markit CMBX index series.
Many of the AM tranche bonds are eligible for inclusion in the Term Asset-Backed Securities Loan Facility program, Markit adds.
The company further says it expects the CMBX.NA.AM indices to be an actively traded tool for investment in CMBS and for managing risk in CMBS portfolios. The index will be priced on a daily basis by the licensed market makers.