| The Markit TRX.NA index is a total return swap index referencing all Markit CMBX.NA.AAA constituents from each series. |
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| Product summary: |
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| Markit owns and administers the TRX.NA, which is a liquid, tradable tool allowing investors to gain exposure to cash CMBS via TRS contracts. Its liquidity and standardization allows investors to accurately gauge market sentiment around the asset-class, and to take short or long positions accordingly. |
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| Key benefits: |
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| Multiple market-maker platform with proven track record in synthetic asset-backed indices, particularly CMBS via the Markit CMBX.NA index |
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| Reference entities selected from Markit CMBX and the availability of daily closing prices at www.markit.com provides important transparency |
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| Index brings standardization to the total return cash market, previously offered by individual dealers |
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| Allows investors to take positions cash bond spread movement only as opposed to credit risk via CDS indices |
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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 TRX.NA 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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| 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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| Index utilizes consensus cash CMBS spreads, prices, and durations to determine index levels |
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| Daily composite levels at the index and constituent level allow for market participants to track movements in CMBS market sentiment |
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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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