About a-team Marketing Services
The knowledge platform for the financial technology industry
The knowledge platform for the financial technology industry

A-Team Insight Blogs

Fitch Launches Pricing Service for Asset-Backed Credit Default Swaps

Subscribe to our newsletter

Fitch Solutions last month launched a new pricing service for asset-backed credit default swaps (ABCDSs). The new services is aimed at meeting what Fitch sees as growing demand for independent pricing that covers the ABS product spectrum.

As such, the company is pitching the new service as complementary to its existing single-name credit-default swap and loan CDS services. The ABCDS service combines consensus pricing for asset-backed credit default swaps with a benchmark service to provide a derived price for illiquid assets.

Fitch ABCDS provides coverage of 7500 ABCDSs globally by combining consensus pricing for liquid issues with benchmarking for illiquid issues. Asset types include residential and commercial mortgage-backed securities (RMBSs/CMBSs), credit cards, automobile ABSs and collateralized debt obligations (CDOs).

According to Thomas Aubrey, managing director at Fitch Solutions, the Fitch ABCDS Pricing service alleviates the need for users to consolidate and clean data from multiple sources; it uses a managed data cleansing process to ensure reliability and data quality. Users – portfolio and hedge fund managers, research analysts and credit risk officers are being targeted – can use the Fitch service to measure and monitor credit quality, providing increased transparency for corporate shareholders and regulators.

Contributors are encouraged to supply data to the new service by a ‘give and get’ facility that gives them detailed information on the named credits for which they contribute information. This data includes anonymous market quote plus daily data cleaning reports that highlight problem data.

Fitch staff are made available to answer queries about the data. The company is providing pricing for illiquid ABCDSs derived from bespoke benchmarking. More liquid securities are priced using more generic benchmarks based on collateral, vintage and rating. The new service can be accessed via Fitch’s web-site, or using FTP, allowing clients to integrate it with internal systems or off-the-shelf third-party software.

Separately, the company has added a new search engine to its FitchResearch.com online portal, giving subscribers greater search functionality across its archive of data, research and analytics. The FitchResearch online portal is a web-based subscription service that provides access to Fitch’s ratings, research and surveillance tools, covering a broad range of sectors, issuers and securities, and can be customized by users to suit individual portfolios.

Subscribe to our newsletter

Related content

WEBINAR

Recorded Webinar: Augmented data quality: Leveraging AI, machine learning and automation to build trust in your data

Artificial intelligence and machine learning are empowering financial institutions to get more from their data. By augmenting traditional data processes with these new technologies, organisations can automate the detection and mitigation of data issues and errors before they become entrenched in workflows. In this webinar, leading proponents of augmented data quality (ADQ) will examine how...

BLOG

Rising Volumes of Unstructured Data Pose Utility Challenge: Webinar Review

The staggering growth in the volume of unstructured data being generated around the world is posing a challenge to financial institutions use of the information. In a recent A-Team Group webinar poll, most respondents said that the huge amounts of data contained on social media, in reports, videos, contracts and corporate memos and meeting minutes...

EVENT

TradingTech Summit MENA

The inaugural TradingTech Summit MENA takes place in November and examines the latest changes and innovations in trading technology and explores how technology is being deployed to create an edge in sell side and buy side capital markets financial institutions in the region.

GUIDE

Regulatory Data Handbook 2024 – Twelfth Edition

Welcome to the twelfth edition of A-Team Group’s Regulatory Data Handbook, a unique and useful guide to capital markets regulation, regulatory change and the data and data management requirements of compliance. The handbook covers regulation in Europe, the UK, US and Asia-Pacific. This edition of the handbook includes a detailed review of acts, plans and...