- Interest Rate Swap Valuation Service
- CDS Valuation Service

- Bank Loan Pricing Service

INTEREST RATE SWAP VALUATION SERVICE

Interest rate swaps are a significant portion of the OTC derivatives market, estimated at a total notional amount outstanding of $250 trillion as of June 2006 (International Swaps and Derivatives Association). Despite growth in the use of these financial instruments, many firms still face operational challenges when trying to efficiently obtain access to independent valuations.

Interactive Data Pricing and Reference Data has recognized this challenge and now automates the delivery of independent valuations of interest rate swaps through FTS.

The interest rate swap valuation service delivers valuations based on benchmark curves and trade details input by customers.   Interactive Data’s new service will generate two valuations each day: based on curves at the end of the day in London (16:30 GMT) and at the end of the day in New York (16:30 ET). You can choose which valuation you would like to receive, or select both, depending on your needs. 

CDS VALUATION SERVICE

Credit default swap (CDS) trading has become a significant driver of fixed income market activity. The International Swaps and Derivatives Association (ISDA®) estimates that the notional amount of credit default swaps outstanding around the globe was $26.0 trillion in June 2006. This represents growth of nearly 52 percent since the beginning of 2006, and approximately 109 percent over the previous year.

Our CDS valuation service provides a robust set of capabilities designed to meet the needs of firms that own or trade this type of derivative. The offering enables clients to review their CDS portfolio, identify which holdings they would like to value – with the option of using Markit’s industry standard Reference Entity Database (Markit RED™) codes – and then easily submit a valuation request. Through an alliance with Markit, We can deliver an independent valuation based on the cleaned and averaged prices taken from over 50 dealers in the CDS markets.

The CDS valuation service is available to clients as an add-on to our evaluation services. The new service is also seamlessly integrated into a module of our FTS online portfolio administration service.

BANK LOAN PRICING SERVICE

World-wide loan volumes have increased significantly in recent years, up from $2.3 trillion in 2000 to $3.5 trillion in 2005 (Dealogic).   As these volumes grow and investors enter the bank loan market, it will be increasingly important for firms to have access to independent valuations.

Our service provides clients with seamless access to independent valuations of syndicated bank loans.  The bank loan pricing service also automates the delivery of refinancing, termination and substantial amendments to loans, as well as the effective date of the change, which can help firms to efficiently keep track of these events.