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

A-Team Insight Blogs

Thomson Reuters to Use Lewtan’s ABSNet Data for Valuation Risk Service

Thomson Reuters has selected Lewtan Technologies’ ABSNet to provide it with asset backed securities (ABS) data in order to expand its Valuation Risk Service. The vendor will use the ABSNet cash flow library to provide its clients with additional coverage of structured finance instruments in Europe, says Karl Mackelburg, global head of structured finance and derivative pricing at Thomson Reuters.

“The opaque nature of the world’s structured finance markets has driven demand for robust, independent, evaluated prices,” says Mackelburg. “Working with Lewtan supports Thomson Reuters’ goal of incorporating external market expertise to provide greater coverage and accuracy, especially on difficult to value assets.”

The addition of the data is therefore aimed at helping to strengthen transparency and develop better evaluated prices in the marketplace, claims the vendor. To this end, Thomson Reuters will use the ABSNet cash flow library to provide model support in conjunction with observable price data for the broadest European mortgage backed securities (MBS) coverage.

Market dislocation in global ABS, MBS and commercial mortgage-backed securities (CMBS) bond prices has required investors to acquire additional data on both the evaluated prices themselves and underlying credit performance. Lewtan provides both deal models to form independent pricing valuations as well as underlying credit performance data on both the bonds and the collateral supporting these transactions.

Ned Myers, chief marketing officer of Lewtan, comments: “Market transparency of prices and challenges with the mark to market model are on the forefront. With the structured finance community left to continue pricing most bonds on a Level 3 basis under FAS 157, investors have had to interpret wide fluctuations in derivatives market prices, internal valuation models, and third party valuations to determine the value of their portfolios. The combination of ABSNet’s data and deal models with Thomson Reuters pricing expertise will provide more credible prices when a mark to model price is required.”

Thomson Reuters launched its Valuation Risk Service at Sibos last year, with a view to providing financial institutions with independent valuations across a number of asset classes including structured products and derivatives. The service is based on an open model approach to pricing and valuation and is integrated with the Kondor and Reuters 3000 Xtra pricing libraries.

Related content

WEBINAR

Recorded Webinar: Brexit: Reviewing the regulatory landscape and the data management response

With Brexit behind us and the UK establishing its own regulatory regime having failed to reach equivalence with the EU, financial firms face challenges of double reporting, uncertainty about UK regulation, and a potential exodus of top talent. The data management response is not easy and could stretch some firms to the limit as they...

BLOG

Fund Administration Services Provider EFA Selects NeoXam Impress Regulatory Edition

EFA, a provider of administrative services to the fund industry in Luxembourg, has selected NeoXam’s Impress Regulatory Edition hosted with NeoXam-as-a-Service to help meet its regulatory goals. EFA was already using NeoXam GP, the vendor’s back-office investment accounting tool, and selected Impress Regulatory Edition as it needed a dedicated platform to industrialise operations, as well...

EVENT

ESG Data & Tech Summit 2022

This summit 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

Entity Data Management Handbook

Following on from the success of our Regulatory Data Handbook, A-Team Group is pleased to introduce its new Entity Data Management Handbook which is available for free download. This Handbook is the ultimate guide to all things entity data: Why Entity Data is important A full review of Legal Entity Identifiers (LEIs) Where they came...