The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.

All material subject to strictly enforced copyright laws. © 2022 Euromoney, a part of the Euromoney Institutional Investor PLC.

CMBS index: Back to the drawing board

Efforts to launch a CMBS index in Europe have foundered, so the proponents of the product have now decided to abandon the original project and start again.

Caroline Philips, Eurohypo “To be able to properly hedge spread risk via an index would be a very good development for our business”
Caroline Philips, Eurohypo

The group of eight dealers that have been working on producing a European CMBS index have “gone back to square two” on the product, which was originally expected to have been launched shortly after the ABX and CMBX products in the US at the beginning of this year. The group, which includes Citigroup, Barclays Capital, Lehman Brothers, Credit Suisse, Morgan Stanley, Deutsche Bank, UBS and Merrill Lynch, has gone back to the drawing board on a number of aspects of the product, which will now not emerge until the latter part of the year at the earliest. The rethink has partly been driven by closer examination of where demand for the product will come from. An important factor in this is the CMBS conduits’ need to hedge spread risk during ramp-up of individual deals – a process that can take three to six months. There is significant demand from originators for a product that can lay off this exposure while the pool is being amassed.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.


Unlimited access to and

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually


Unlimited access to and, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors


Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree