Source: FT Interactive Data Europe
FT Interactive Data Europe, part of Interactive Data (NYSE: IDC) and a leading supplier of financial information and analytical software to global markets, today announced that it is launching an enhanced evaluations service with Interactive Data's CMS BondEdge division, one of the industry's leading fixed income portfolio analytics vendors.
Two new modules of assumptive and risk data are now available to download with FT Interactive Data's bond evaluations via FTS, its securities administration service. The powerful CMS BondEdge analytical capabilities enable FTS users to download dynamic measures such as option-adjusted spread (OAS) and option-adjusted duration.
The new assumptive data module provides access to the assumptions – such as the spread and yield – used to arrive at an evaluation, whilst the risk data module shows the risk measures, such as option-adjusted duration and convexity.
The new modules will help FTS users to independently monitor market rate risk associated with a broad spectrum of fixed income securities for which FT Interactive Data provides an evaluation. These will be provided on a request basis and will include coverage of specialised offerings such as US collateralised mortgage obligations (CMOs).
Against the background of new and more complex regulations – such as IFRS, UCITS III and Basel II – the financial services industry is becoming increasingly risk-focused. In addition, credit portfolios are often being managed within ever tightening constraints as part of their mandate. Active risk management has therefore become integral to the management process, with considerable focus on currency concentration, interest rate sensitivity, credit spreads, valuation and issuer concentration.
Lou Gehring, senior vice president, product manager, CMS BondEdge, commented: "We've seen a significant increase in the need for feed-based calculated bond analytical measures, such as option-adjusted duration and convexity, to help further centralise content that feeds investment applications and facilitate the risk management process."
Ian Blance, FT Interactive Data's vice president, Capital Markets Europe, added: "There is a need for high quality fixed income analytical services in the European marketplace. By combining the capabilities of CMS BondEdge with FT Interactive Data’s expertise in bond evaluations, we aim to assist the industry with its increasingly complex compliance needs by offering enhanced, added-value services."