Intex Solutions, a provider of structured securities deal models and cashflow analytics, has selected Interactive Data to provide independent evaluated prices on a range of securitised bonds for use in its INTEXcalc cashflow analysis application. The application is designed to offer transparency, ease of use and speed in analysing structured financial securities.
The Interactive Data evaluated prices are available immediately within INTEXcalc and will be used to support single security and portfolio analytics reports. The addition of the evaluated prices to the application brings all necessary reference points together in one tool for the analysis of global residential mortgage-backed securities, asset-backed securities and commercial mortgage-backed securities. Previously, INTEXcalc users had to resort to Interactive Data’s online evaluated pricing service or in-house applications to source the pricing data.
Jim Wilner, vice president at Intex, explains: “INTEXcalc provides analytical tools and cashflow models that can help meet market transparency requirements for traders, investors, issuers and other participants. By integrating Interactive Data’s evaluated pricing for a universe of structured securities, we are helping our clients be better equipped to analyse their exposure and make investment decisions.”
Liz Duggan, managing director of global evaluations at Interactive Data, says the marriage of two industry benchmarks to improve the analysis of structured securities in INTEXcalc has generated significant interest among front and middle-office clients specialising in securitised products, with many testing access to the Interactive Data information.
“Integrating our independent evaluated prices into Intex’s analytical application will help participants in the global securitisation market perform a wide range of comparative scenario analyses and improve their portfolio management and risk management practices. The amount of interest shown in the solution reflects the fact that the combination of Intex’s cashflow modelling software and our evaluated pricing is something the market wants,” she says.
Noting increasing market interest and issuance in the securitised world in general, Duggan says Interactive Data continues to pursue the two themes of transparency and additional pricing to help clients meet global accounting guidance and regulations requiring information on how evaluated prices are reached. The company’s Vantage web application for evaluated pricing transparency was upgraded to include 2.8 million securities in the fixed income market, more than twice its previous coverage, in April this year, and Duggan says the company is continuing to add functionality to version 2.0 in response to client feedback, particularly in more opaque areas such as securitised securities.
With six regular releases of Vantage version 2.0 scheduled since its introduction and adding functionality, the platform is developing gradually, but it is also being pushed ahead on an incremental basis with larger, quarterly themed releases. The next quarterly release is due in early December and will provide more visibility into the market data included in Vantage.
Duggan explains: “We have relationships with market data firms and we want to show what market data has been consumed in creating evaluated prices and which market data firms have provided which elements of the data. This is another layer of understanding of the input to evaluated prices in the fixed income market.”
If this plays into Interactive Data’s push for transparency, its commitment to adding more evaluated pricing to its services also continues. Next in line is the November introduction of collateralised debt obligation data covering evaluated pricing for leveraged loans. This will be followed in 2013 with evaluated pricing for collateralised loan obligations.