Trepp Analyzes CRE Derivatives

Trepp LLC, a provider of commercial mortgage-backed securities and commercial mortgage information and analytics, has introduced an information tool tied to the CMBS and commercial real estate-related derivatives market.

This tool, TreppDerivative, uses Trepp's CMBS deal library to provide information for the growing derivatives market.

It provides different market participants - including underwriters, traders, hedge funds and collateralized debt obligation managers - a resource to monitor, analyze and create CMBS and commercial real estate derivatives, according to Trepp.

The company serves as the cash-flow provider to Markit, the administrator of CMBX, a recently launched CMBS derivatives index. Access to TreppDerivative will provide more analysis and surveillance on the obligations that go into the CMBX index, Trepp reports.

With this access, users could analyze the CMBX basket and its underlying securities in various ways.

As well, Trepp is developing a module within TreppDerivative that will provide market participants flexibility "to select or create their own custom-defined CMBS and commercial real estate-backed derivatives."

This will better facilitate liquidity and reporting by allowing information to be shared internally as well as with counterparties, according to Trepp.

And these new tools are also expected to support the creation of various synthetic securities in the commercial real estate arena.

"We are very excited to be extending the TreppDerivative products beyond CMBX in order to support the emerging single-name CMBS CDS market place. In addition to creation and analysis of CMBS and CRE CDS, clients will be able to monitor their book of positions on a proactive basis to identify possible credit events as early as possible and project their net cash flows across their overall book," said Dan Gottlieb, COO, Trepp.

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