Addition of AJ Tranche to Markit CMBX Indices

Markit Group has announced that an AJ tranche has been added to the off-the-run Markit CMBX indices. The new tranche is designed to provide enhanced trading opportunities to institutional investors seeking exposure to an additional credit class. The company added an AJ tranche – the most subordinate of the AAA 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 CMBX 1, CMBX 2 and CMBX 3 indices as well. The seven index tranches reference bonds rated AAA, AJ, AA, A, BBB, 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.


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