Standard & Poor’s, the provider of financial market intelligence, launches Valuation Scenario Services for Structured Asset Portfolios, a new service to help investors evaluate the intrinsic value of structured assets and complex securities.
The new service is provided by Standard & Poor’s Fixed Income Risk Management Services (FIRMS) business, which offers a range of analytics that give investors greater context around asset pricing and the detailed relationships between counterparties and obligors.
The analytics provided by Standard & Poor’s Valuation Scenario Services offer investors a step-by-step, transparent assessment of their structured portfolios under a range of different assumptions and economic scenarios. This information is then reviewed in a collaborative decision support process with clients to help drive an improved understanding of structured credit portfolio value. Standard & Poor’s Valuation Scenario Services operates independently from the company’s ratings business.
Standard & Poor’s Valuation Scenario Services are supported by the group of structured finance experts and industry analytics tools that help to bring greater transparency to structured portfolios.
“Market uncertainty, a lack of liquidity and an overall crisis sentiment are combining to create a disrupted relationship between market-observed pricing and the intrinsic value of structured assets on investors’ balance sheets,” says Lou Eccleston, executive managing director, Fixed Income Risk Management Services, Standard & Poor’s.
“Our Valuation Scenario Services help investors analyze their portfolios against a multitude of potential economic scenarios to get a much clearer picture of the real value of the paper they are holding.”
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