Markit launched a new service for the pricing of collateralized loan obligation (CLO) tranches.

Markit, a financial information services company, covers more than 5,000 investment grade tranches of U.S. and European CLOs.

The launch was in response to demand from customers for a high quality, independent data source for CLO pricing. 

The data provided by Markit will be used for price discovery, price verification, valuation and risk management. 

“Markit’s transparent methodologies and expertise in gathering and using observable market data enables us to offer a cutting-edge approach to CLO pricing,” said Nathan Kirk, director and head of U.S. securitized products at Markit.

He added, “We are pleased to extend our capabilities in providing high quality evaluated pricing services to the CLO market in order to support customer needs.”

The new service is an expansion of Markit’s evaluated pricing business for securitized products, including residential mortgage-backed securities.

Later this year, the new CLO pricing service will be expanded to cover mezzanine and equity tranches of CLOs.