The leading knowledge platform for the financial technology industry
The leading knowledge platform for the financial technology industry

A-Team Insight Blogs

S&P’s FIRMS Business Joins Valuations Vendor Community with Structured Asset Portfolios Service

As another example of Lou Ecclestone’s revamp of the Standard & Poor’s offering as part of its recently launched Fixed Income Risk Management Services (FIRMS) business, the vendor has added a new valuations service for structured assets and complex securities. The Valuation Scenario Services for Structured Asset Portfolios pits S&P against the competition in the already rather crowded valuations market.

According to Ecclestone, who was appointed executive managing director of FIRMS at the start of last year, the service is aimed at providing a much clearer picture of the real value of the paper financial institutions are holding in order for them to more accurately analyse their portfolios. “Market uncertainty, a lack of liquidity and an overall crisis sentiment are combining to create a disrupted relationship between market observed pricing and the intrinsic value of structured assets on investors’ balance sheets,” he says.

Accordingly, the service offers a range of analytics that aims to give investors greater context around asset pricing and the detailed relationships between counterparties and obligors. FIRMS indicates it is currently working with an unspecified number of central banks, investors, regulatory and industry bodies to help them value these complex and illiquid securities.

The vendor claims that the analytics provided by the service offer investors a step by step, transparent assessment of their structured portfolios under a range of different assumptions and economic scenarios. This information is then reviewed in a collaborative decision support process with clients to help drive an improved understanding of structured credit portfolio value.

Standard & Poor’s Valuation Scenario Services operates independently from the company’s ratings business and it is supported by the newly formed Market, Credit and Risk Strategies (MCRS) team. MCRS has been created as an independent research group that analyses cross market and cross asset class valuations and relationships. The valuations service is also supported by the Standard & Poor’s Structured Finance Platform and modelling team and the Fixed Income Architects team.

Related content

WEBINAR

Recorded Webinar: Entity identification and client lifecycle management – How financial institutions can drive $4 billion in cost savings

A new model in Legal Entity Identifier (LEI) issuance has created significant opportunities for financial institutions to capitalise on their KYC and AML due diligence. By becoming Validation Agents and obtaining LEIs on behalf of their clients, financial institutions can enhance their client onboarding experience, streamline their internal operations, and open the door to new,...

BLOG

DSB Managing Director Emma Kalliomaki Outlines Issues in Progressing the UPI

As the Derivatives Service Bureau’s (DSB’s) first round of industry consultation on fee principles for the Unique Product Identifier (UPI) plays out, we talked to Emma Kalliomaki, managing director of ANNA and the DSB, about some of the issues involved in getting the UPI up, running and ready for its Q3 2022 release. Early conversations...

EVENT

LIVE Briefing: ESG Data Management – A Strategic Imperative

This breakfast briefing will explore challenges around assembling and evaluating ESG data for reporting and the impact of regulatory measures and industry collaboration on transparency and standardisation efforts. Expert speakers will address how the evolving market infrastructure is developing and the role of new technologies and alternative data in improving insight and filling data gaps.

GUIDE

The Reference Data Utility Handbook

The potential of a reference data utility model has been discussed for many years, and while early implementations failed to gain traction, the model has now come of age as financial institutions look for new data management models that can solve the challenges of operational cost reduction, improved data quality and regulatory compliance. The multi-tenanted...