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Alternative Investment Valuations Service
In the past decade, investment in OTC derivative instruments has grown dramatically. As the popularity of these instruments expanded, Interactive Data recognized the need for clients to value these instruments. This prompted the launch of the Alternative Investments Valuations Service in 2006. Since the launch, the service has expanded to include valuations and associated information for interest rate swaps, credit default swaps, and syndicated bank loans.
The newest addition to this service includes valuations for a wide range of OTC derivatives and highly complex structured products through an exclusive agreement with Prism Valuation.
Interest Rate Swap Valuations
Interest rate swaps are a significant portion of the OTC derivatives market. The Bank for International Settlements estimated the total notional amount outstanding for interest rate derivatives to be $458 trillion as of June 2008. 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 its Alternative Investments Valuations Service.
The interest rate swap valuation service delivers valuations based on benchmark curves assembled from industry standard sources and trade details input by customers. Interactive Data's service generates three valuations each day: based on curves at the end of the day in London (16:30 GMT) and New York (15:00 ET or end of day 16:00). You can choose which valuation you would like to receive, or select both, depending on your needs.
CDS Valuations
The Bank for International Settlements estimated the total notional amount outstanding for credit default swaps around the globe to be $43.0 trillion as of June 2007. This represents growth of approximately 66 percent over the previous twelve months.
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 valuations based on cleansed spread curve data obtained from over 85 dealers in the CDS markets.
Bank Loan Valuations
Our service provides clients with seamless access to 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. Loan valuations are based on data gathered by Markit from more than 60 dealers in the bank loan market, comprising approximately 6,400 loan prices daily.
Access Options
The Alternative Investments Valuations Service is available through an add-on to Interactive Data Pricing and Reference Data's evaluation services or as a module to its FTS online portfolio administration service.
- To request more information on our alternative investment valuations service, please click here .
- To see documentation on this service, please click here .