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: Navigating a Complex World: Best Data Practices in Sanctions Screening

As rising geopolitical uncertainty prompts an intensification in the complexity and volume of global economic and financial sanctions, banks and financial institutions are faced with a daunting set of new compliance challenges. The risk of inadvertently engaging with sanctioned securities has never been higher and the penalties for doing so are harsh. Traditional sanctions screening...

BLOG

Data Transparency ‘Crisis’ Hampering Private Markets: Report

Private markets investors are dogged by a “data transparency crisis” that is exposing them to greater risk of compromising their fiduciary integrity and losing their competitive edge, according to a new report. In what the authors call a private markets paradox, the report by Rimes states that investors are beset by a lack of data...

EVENT

TradingTech Summit New York

Our TradingTech Summit in New York is aimed at senior-level decision makers in trading technology, electronic execution, trading architecture and offers a day packed with insight from practitioners and from innovative suppliers happy to share their experiences in dealing with the enterprise challenges facing our marketplace.

GUIDE

Data Lineage Handbook

Data lineage has become a critical concern for data managers in capital markets as it is key to both regulatory compliance and business opportunity. The regulatory requirement for data lineage kicked in with BCBS 239 in 2016 and has since been extended to many other regulations that oblige firms to provide transparency and a data...