NumeriX, the award-winning, independent leader in pricing and risk analytics for fixed income, credit, foreign exchange, hybrids, cross currency, commodities, inflation rate and equity derivatives, today announced the access to Intex's database and cashflow engine within its analytics offering.
The addition of Intex's technology will boost NumeriX users' ability to accurately value and price credit and structured finance transactions.
In the current risk-averse markets, institutional investors need to reexamine their portfolios for proper leverage to anticipate any unforeseen market volatility. The breadth of integration enabled by this partnership allows traders to include credit and other structured finance instruments more freely within their portfolios without added risk. By delivering increased visibility into underlying market risks, NumeriX and Intex enable users to develop a clearer understanding of the risk/return profile of their investment strategies.
The NumeriX solution is a comprehensive .NET-based application for valuing, profiling and managing risk of credit derivatives and structured finance products. Its underlying industry standard models are powered by the state-of-the-art high performance NumeriX analytics, and it is designed to integrate seamlessly to external data sources and third party systems.
Initially the NumeriX solution will ship with discrete scenario valuation and NAV models. Future versions will incorporate Monte Carlo valuation as well as stochastic models - including static copula and dynamic credit models. To access the Intex database and cashflow engine, NumeriX customers can obtain a license from Intex.
Through intuitive and customizable reports, the application makes it easy to:
- Value and profile complex securities
- Understand underlying market and credit risks
- Measure sensitivities and concentrations
- Assess model risk
"In today's environment, and especially in light of the challenges imposed by the current sub-prime credit crisis, we are seeing a high demand for accurate, sophisticated financial models in the deal valuation process. Institutions and traders are looking for the best tools to analyze and value these very complex structured securities," said Jim Wilner, Vice President at Intex. "The integration of Intex's deal model libraries and cashflow generation functionality into the NumeriX analytical platform offers traders access to the most comprehensive and accurate collection of structured fixed income deal model files with which to accurately price tranches of these securities."
"The key to staying ahead in today's market is flexibility and foresight," said Steven R. O'Hanlon, President and COO of NumeriX. "The added coverage in credit and structured finance eases the challenge of finding the most accurate representation of how deals will play out in the real markets."
The combined solution appeals to:
- Traders and portfolio managers, who value potential investment opportunities and must develop a clear understanding of their investment strategies' risk/return profile
- Credit officers, who need to develop a complete picture of a structured finance portfolio's underlying credit risks, and explicitly model default risk, prepayment and loss severity at the lowest level of granularity
- Market risk officers, who mark-to-market their books on a daily basis, and require reliable, automated processes which can be run on a timely basis as well as on-demand risk analytics and stress-tests
Even as market volatility increases, traders can capitalize on the fluctuating environment by delving further into risk calculations for accurate pricing. Institutional investors and fund managers are looking for increased precision in valuing deals before entering the markets. Third-party analytics adds the level of transparency needed for the risk in complex transactions.