R2 Financial Technologies announced it has released the Strategy Analyzer as a new component of its groundbreaking NxR2 product.
Strategy Analyzer provides portfolio managers with the ability to measure the return on their strategies, taking into account the degree of leverage undertaken, financing costs and their cost of capital. This analysis can be performed on existing strategies or on hypothetical strategies that have not yet been implemented, allowing time to test and simulate outcomes with different hypothetical holdings and market conditions. In addition to producing standard metrics (Exposures, Duration, DV01, yield, etc.), NxR2 will now be able to produce tables that clearly showcase P&L, Return-on-Investment, Return-on- Capital, and Cashflow profiles at different points in time on the investment horizons and across defined scenarios. Working with a direct connection to real time market prices, the analysis can be built and then calculated by traders or portfolio managers using up to the minute market information, making it a very accessible decision making tool.
"We are very excited about the capabilities that Strategy Analyzer provides to NxR2 users," said Benoit Fleury, Head of Financial Engineering and Product Management at R2 Financial Technologies. "Portfolio managers have never had a good way to incorporate the impact of leverage in assessing their investment strategies. Decisions had to made with a much less complete picture of the potential return on an investment strategy. The new functionality introduced in NxR2 makes it very easy to compare the performance of different investment strategies, considering different market conditions and under specified investment horizons and any variety of leverage assumptions."
NxR2 provides traders, portfolio and risk managers with superior risk, scenario and portfolio analytics for real-time pricing, hedging, and capital management of multi-asset portfolios. NxR2 is inherently multi-asset class, covering all asset classes (equities, fixed income structured finance complex interest rate instruments, equity and credit derivatives).