Markit, provider of independent data, portfolio valuations and OTC derivatives trade processing, launches its ABX Calculator, designed to aid settlement of ABX index trades.
Markit is the calculation agent for ABX.HE, a widely traded synthetic index of U.S. home equity Asset-Backed Securities (ABS) that has become a closely watched barometer of the health of the ABS markets.
“Markit’s ABX Calculator provides clients with the ability to assess the value of their synthetic ABS positions,” says Kevin Gould, Executive Vice President and Head of Data Products and Analytics at Markit. “Given the performance of many of the mortgage pools underlying home equity deals in the ABX indices, it is critical for investors to understand how these credit scenarios will play out in the performance of their index trades, and to measure risk on an ongoing basis.”