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

Standard & Poor’s Expands Valuations Via Exclusive Arrangement with CSV

Subscribe to our newsletter

Hot on the heels of its new evaluated pricing service for the European structured finance marketplace, Standard & Poor’s has struck an exclusive alliance with New York-based Complex Security Valuations Inc. (CSV) to provide valuations for complex, illiquid and hard-to-value securities. The deal will expand both companies’ offerings in the space, and establish a combined product and bespoke pricing facility, with the latter providing clients with direct access to valuations specialists.

The arrangement with CSV will boost S&P’s valuations offerings to include complex instruments, including credit default swaps, interest rate swaps, and credit- and equity-linked notes. Last month, S&P launched its structure finance valuations offering, with coverage of asset- and mortgage-backed securities (Reference Data Review, March 2006).

CSV’s valuation process uses market research, academic papers and industry practitioner journals to reverse-engineer primary market pricing. The company offers audit trails of the assumptions and theoretical underpinnings of its models, giving clients defensible and documented pricing methodologies.

According to Peter Jones, director of European securities evaluations at Standard & Poor’s, Standard & Poor’s will offer the complex security valuations through its bulk feed mechanisms, including the newly expanded MasterFeed. In addition, customers will be able to contact CSV valuations specialists directly to discuss valuations and methodologies.

“This is an on-demand service,” says Jones. “CSV has a extensive library of structures and algorithms and they will look to provide pricing solutions for many different derivative and security types”.
Strategically for Standard & Poor’s, the CSV relationship extends its initiative to offer pricing and valuations for hard-to-price instruments. “There’s no real change of message here,” says Jones. “It’s an extension of our content and capabilities through the asset classes. Our aim through this offering is to focus on niche areas: hard-to-find, illiquid, over-the-counter, complex, hard-to-price securities.”

Subscribe to our newsletter

Related content

WEBINAR

Recorded Webinar: Unpacking Stablecoin Challenges for Financial Institutions

The stablecoin market is experiencing unprecedented growth, driven by emerging regulatory clarity, technological maturity, and rising global demand for a faster, more secure financial infrastructure. But with opportunity comes complexity, and a host of challenges that financial institutions need to address before they can unlock the promise of a more streamlined financial transaction ecosystem. These...

BLOG

FpML to DRR: TradeHeader’s Journey to the Heart of Regulatory Data Standards

Digital Regulatory Reporting (DRR) has gained momentum as the industry looks to replace fragmented, firm-specific interpretations of reporting rules with a shared, machine-executable model that consistently links regulatory requirements to the data used to fulfil them. Rather than relying on templates, local mappings and bespoke logic embedded deep within legacy systems, DRR provides a common...

EVENT

Eagle Alpha Alternative Data Conference, Spring, New York, hosted by A-Team Group

Now in its 9th year, the Eagle Alpha Alternative Data Conference managed by A-Team Group, is the premier content forum and networking event for investment firms and hedge funds.

GUIDE

Fatca – Getting to Grips with the Challenge Ahead

The industry breathed a sigh of relief when the deadline for reporting under the US Foreign Account Tax Compliance Act (Fatca) was pushed back to July 1, 2014. But what’s starting to look like perhaps the most significant regulation of the next 12 months may start to impact our marketplace sooner than we think, especially...