Dealers looking to bring real money investors into the tranched ABX index TABX are looking to offer funded super-senior notes linked to the top part of the index. A likely note would offer attachment points at 50% or 60% either with or without additional leverage. An official at a rating agency confirmed he has already seen several proposals.
TABX market makers have been looking for a way to inject pricing stability into the TABX index by encouraging buy-and-hold investors to buy into the structure. These notes could appeal to those kind of investors because they would be rated.
