Source: Fitch
To provide greater transparency within the global credit derivatives market, Fitch Solutions has expanded its CDS Pricing Service to now include single name CDS derived bid-offer spreads and CDS benchmark curves that show average CDS values by rating level, industry sector and region.
"The introduction of Fitch's CDS benchmark curves has helped our clients to perform more effective peer analysis of the most illiquid names in their portfolios, bringing further transparency to the price discovery and risk management process," said Sabine Alvarez, Executive Director Content, vwd group, who first subscribed to Fitch Solutions' CDS Pricing Service in November 2009.
"The addition of derived bid-offer spread data will provide valuable new insight, especially for names outside the regularly traded universe, into market confidence around a CDS price whilst our new CDS benchmark curves will enable more effective peer analysis of the most illiquid names," said Thomas Aubrey, Managing Director, Fitch Solutions.
Fitch's CDS Pricing Service already includes ABCDS Pricing, Loan CDS Pricing, CDS Benchmarking, CDS liquidity Scores and CDS Spread Indices which, in addition to the new derived bid-offer spreads and benchmark curves, are all delivered to users in a single standardized feed via Fitch's Integrated Data Service (IDS).
"The combination of these product additions with our existing CDS pricing service further underlines Fitch Solutions' ability to deliver premium quality pricing data from credit derivative market makers," Aubrey added.
The derived bid-offer data is based on spread band, liquidity ranking and regional weightings and covers 3000 global names. The benchmark curves are based on the same liquidity based methodology as Fitch's existing suite of CDS indices.