| The Markit CMBX index is a synthetic tradeable index referencing a basket of 25 commercial mortgage-backed securities. |
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| Product summary: |
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| Markit owns and administers the CMBX, which is a liquid, tradeable tool allowing investors to take positions on commercial mortgage-backed securities via CDS contracts. The index has become a widely used benchmark for the performance of CMBS. Its liquidity and standardization allows investors to accurately gauge market sentiment around the asset-class, and to take long or short positions accordingly. |
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| Key benefits: |
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| Multiple market-maker platform with proven track record in the credit indices. An initial focus on the North American CMBS sector ensures liquidity |
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| An objective, rules-based approach to portfolio construction and the availability of daily closing prices at www.markit.com provides important transparency |
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| Standardization is a consistent theme, ranging from the selection of reference obligations to contract documentation to availability of payments amounts. All are calculated and posted monthly |
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| Markit CMBX suits a variety of investors looking for diversified CMBS exposure including asset managers, hedge funds, prop trading desks, and asset originators |
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| Markit provides a free PV calculator to market participants to enhance the liquidity and transparency around the index |
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| Key functions: |
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| Standardized basket of CMBS reference obligations investors can use to gain exposure to asset class |
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| Benchmark index for CDS on CMBS |
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| Liquid market tool serving as a gauge for CMBS |
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| Free Markit calculator allows market participants to agree on PV when trading the index |
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| Daily composite levels allow for market participants to track movements in CMBS market sentiment |
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