GLOBAL - CDS IndexCo LLC, a consortium of 16 investment banks licensed as makers in the ABX and Dow Jones CDX indexes, and Markit Group Limited, have launched CMBX, a synthetic index of US commercial mortgage backed securities (CMBS).
CMBX consists of five traded index tranches. Similar to ABX index which launched in January 2006, the index family consists of five indices based on the 25 most recent CMBS deals.
The minimum size deal is $700m, and one bond from each deal will be referenced in each index.
The following institutions are market-makers in the index: Bank of America, Bear Stearns; Citigroup; Credit Suisse; Deutsche Bank, Goldman Sachs; JPMorgan; Lehman Brothers; Merrill Lynch; Morgan Stanley; Nomura International; RBS Greenwich Capital; UBS; and Wachovia.
Bradford S. levy, managing director, Firmwide eBusiness Group at Goldman Sachs said: “The market for CDS of CMBS has been growing rapidly for several months and we expect CMBX to provide market participants with new ways to take synthetic exposure to the CMBS market.”
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