Markit to Add a Penultimate AAA Sub-Index to ABX.HE Indices
Welcome development.
Markit will add a Penultimate AAA Sub-Index to existing and future series of the Markit ABX.HE indices. The new ABX.HE.PENAAA Sub-index will reference AAA rated bonds that are 2nd to last in principal distribution priority from the existing ABX.HE deals as well as future qualifying deals. The ABX.HE.PENAAA will be added to the existing series of ABX.HE indices on May 14, 2008.
As not many people know, the AAA referenced by Markit is the lowest ranking AAA as there are as many as 4 or 5 AAA senior to the one listed.
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