FT Interactive Data Europe says it is now offering an enhanced bond evaluation service.
The new service, offered in conjunction with Interactive Data’s CMS BondEdge division – a fixed income portfolio analytics vendor – enables users to download two new sets of assumptions (such as spreads and yields) and risk data FTS, FT Interactive’s securities administration service. The CMS BondEdge analytical capabilities also allow users to download dynamic measures such as option-adjusted spread (OAS) and option-adjusted duration.
The new assumptive data module provides access to the assumptions – such as the spread and yield – used to arrive at an evaluation, whilst the risk data module shows the risk measures, such as option-adjusted duration and convexity.
FT Interactive says the new modules will help FTS users to independently monitor market rate risk associated with a broad spectrum of fixed income securities for which FT Interactive Data provides an evaluation. These will be provided on a request basis and will include coverage of specialised offerings such as US collateralised mortgage obligations (CMOs).
“We’ve seen a significant increase in the need for feed-based calculated bond analytical measures, such as option-adjusted duration and convexity, to help further centralise content that feeds investment applications and facilitate the risk management process,” says Lou Gehring, senior vice president, product manager, CMS BondEdge.
FT Interactive says that, against the background of new and more complex regulations – such as IFRS, UCITS III and Basel II – the financial services industry is becoming increasingly risk-focused. In addition, credit portfolios are often being managed within ever tightening constraints as part of their mandate. Active risk management has therefore become integral to the management process, with considerable focus on currency concentration, interest rate sensitivity, credit spreads, valuation and issuer concentration.
Ian Blance, FT Interactive Data’s vice president, Capital Markets Europe, says the new service aims to meet demand for high quality fixed income analytical services in Europe. “By combining the capabilities of CMS BondEdge with FT Interactive Data’s expertise in bond evaluations, we aim to assist the industry with its increasingly complex compliance needs by offering enhanced, added-value services,” he says.
FT Interactive Data provides independent daily evaluations for 2.5 million fixed income and international equity issues.
CMS BondEdge, an Interactive Data division, provides fixed income portfolio analytics. Its flagship product BondEdge product delivers portfolio analysis tools that aim to help users identify opportunities and analyse portfolio risk using sophisticated modelling techniques.