SuperDerivatives, the benchmark for options and the world's leading multi-asset derivatives solutions provider for real-time option pricing, independent revaluation, derivatives data, trading and risk management systems, has announced a new release of its online credit derivatives platform, SD-CD.
The new version represents a substantial increase in the level of functionality, price-transparency and analytic power compared to that offered by currently available solutions - addressing challenges posed by the recent dramatic developments in structured credit markets.
The enhanced version introduces a unique dynamic pricing model for bespoke synthetic tranches, facilitating efficient and transparent hedging and risk management of CDOs. The SD-CD platform provides intraday pricing relying on tradable two-way data from multiple sources (in contrast with competitive products that use previous-day consensus data which does not reflect actual tradable prices), portfolio utilities which support name-specific default and market risk metrics.
Seamlessly integrated with SuperDerivatives benchmark pricing engines for all other asset classes, SD-CD natively facilitates cross-asset hybrid investment structures with correlated risk management. This capability enables investors to easily formulate, price and risk-manage sophisticated strategies that most effectively exploit the inter-dynamics between a company's credit rating, stock price and the prices of energy products and commodities that are related to the company's activity and could affect its credit rating.
"The sub-prime crisis has made it clear that many investors do not have the tools for pricing and risk management of the structured credit instruments. SuperDerivatives is stepping in to fill this gap, improving the transparency and liquidity of credit derivatives as it has done in other asset classes," said Sasha Rozenberg, Product Manager for Credit Derivatives, SuperDerivatives. "We're giving credit derivatives market practitioners a one-stop-shop experience where they can access all asset classes from the same familiar, intuitive user interface - resulting in a single, powerful derivatives platform that allows a combined view of all traded asset classes, supporting hybrid structures and strategies."
The SuperDerivatives' benchmark option pricing model is the only publicly available and market tested model whose accuracy in generating real market prices for all types of derivatives has been proven and validated continuously for several years.