Standard & Poor’s has formed an alliance with Complex Security Valuations (CSV), a consultancy that specializes in valuing credit derivatives and other illiquid or hard-to-value instruments.
The companies have been testing a joint pricing service for the last six months with a small number of clients.
The two companies say demand is coming mainly from mutual and hedge funds looking for daily pricing of credit default swaps (CDS), interest rate swaps, total return swaps, equity-linked securities and other OTC instruments.
The deal means S&P becomes a distributor for CSV. Buyers can access the service via S&P’s MasterFeed system.