Markit has launched a new performance monitoring tool for US asset-backed securities (ABS) in response to market conditions.
Markit’s US ABS Performance Data aims to bring greater transparency to the sub-prime mortgage market. The platform combines complete historical data at the bond, collateral pool and loan level to provide ABS market participants with a vital and timely source of information for deal monitoring and securitisation analysis.
Additional RMBS and ABS asset classes will be added in due course.
The tool complements Markit’s existing structured finance product set which includes cashflow modelling; a CDS of ABS spread service; a CDS of ABS trade settlement calculation service; European ABS performance data; and European ABS pricing.
Markit is also the owner of ABX.HE, a traded synthetic index of U.S. home equity ABS that has become a closely watched indicator and valuation tool in the structured finance markets.
“It will enable market participants to remain at the forefront of the markets and evaluate both the historical performance and the current risk profile of their ABS positions with ease and accuracy,” says Ben Logan, managing director of structured finance, Markit.
The new service dovetails with the Markit’s Reference Cashflow Database (RCD). RCD provides bond-level performance data; simplifies complex settlement calculations; reduces errors in payment matching and clearing; and replaces the need for a costly infrastructure.