Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

Understanding Markit's new TRX.II Index for Hedging CMBS Loans

Newly launched TRX.II may seem complicated, but is not difficult to understand.

Markit launched TRX.II or TRX 2 indices this week. Details and various documents can be found on their website, but for those not familiar with the working of the index, or if the details on upfront payment and dynamic nature of the index are not clear, this article might help understand the mechanics and the underlying logic: