SIX Telekurs has expanded its Evaluated Pricing with a unique solution for valuing securities that are distressed due to credit events.
Credit events such as bankruptcy, a missed coupon or interest payment on a swap or debenture can trigger doubt that an issuer will meet its obligations. This can spark uncertainty in the market, and valuation of even a simple security becomes a challenge. These illiquid securities also make compliance with accounting standards and valuation regulations difficult.
SIX Telekurs, a financial information vendor based in Switzerland, applies quantitatively oriented methods along with a broad range of market-based inputs and comparisons to provide daily or intraday prices for securities that are not quoted and cannot be priced using standard evaluation methods.
“When market uncertainty affects liquidity, which can even occur in good economic times, our Evaluated Pricing for distressed securities provides you with the pricing you need to value 100% of your portfolio,” says Perry Beaumont, head of Evaluated Pricing research and development for SIX Telekurs. “Our analysts have the market contacts to dig deep and uncover the relevant data so we can get a comprehensive view of observable market inputs. More importantly, these seasoned professionals with their real-world experience also have the know-how necessary for qualitative interpretation of all available information. With our patented pricing methodology, we can reverse-engineer the most complex structures, which means we can value distressed securities across the full spectrum – from commercial paper to straight bonds to complex structured instruments.”
SIX Telekurs’ Evaluated Pricing for distressed securities covers a wide range of asset classes, including fixed income, equities, commodities, precious metals and foreign exchange, and provides comprehensive documentation such as key pricing parameters and consistent valuation methodologies.
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