SunGard plans to integrate cashflow models from Markit with its Ambit Risk & Compliance solution suite. Markits cashflow models will be integrated into Ambits asset/liability management (ALM) application, creating a new tool to help ALM professionals accurately assess balance sheet risk over a range of interest rate assumptions.
Markits cashflow models help customers to evaluate collateralised mortgage obligations (CMOs) and asset-backed securities (ABS), and to manage interest rate, prepayment and default risk in fixed income portfolios. The integration of Markits cashflow models with Ambit will help mutual customers to improve the understanding and management of their risk.
We believe this is a strong partnership for customers of both companies, says Ben Logan, managing director of structured finance at Markit. Markit customers who already rely on our data and analytics tools will now be able to benefit from a complete ALM suite using the Ambit offering.
The current financial crisis means that financial institutions require a timely and comprehensive understanding of the cashflow characteristics of the CMO and ABS holdings, says Andi Hug, group vice president of risk and compliance solutions in SunGards banks and corporations business. By giving Ambit customers access to Markits cashflow models, we are providing a complete ALM solution that will help them improve their risk assessment abilities.
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