Credit Default Swaps
Interactive Data’s Credit Default Swap Evaluation Service is the industry’s first widely-available independent CDS evaluation service for single name corporate and sovereign CDS, as well as select CDS indices. Designed to help meet increased demand for independent evaluations and transparency in the derivatives markets, our CDS Evaluation Service leverages our position as an award-winning provider of fixed income evaluated pricing. Our unique, proprietary methodology for producing CDS evaluations is based upon a deep CDS price discovery process in which dealer CDS quotes and composite valuations are augmented by information from related markets including Interactive Data’s corporate bond evaluations.
Our coverage encompasses a wide range of global single-name corporate, sovereign and U.S. municipal entities with denominations in USD, EUR, GBP and JPY. In addition to evaluations for single-name CDS, our coverage includes valuations for a broad array of indices including the CDX™ and iTraxx®. Our CDS evaluations are delivered at approximately 16:30ET each trading day for use in financial reporting and other related activities while our credit curves can be utilized for a range of trading and risk management functions. The promise of greater market and transaction-level transparency will further elevate the importance of sound valuation practices – for margin purposes as well as for accounting and other applications.
Interactive Data’s CDS Evaluation Service offers:
- Search and Trade Validation Flexibility – Multiple ways to search our coverage universe and map trades.
- Timeliness and Quality – Delivered at approximately 16:30ET each trading day for use in financial reporting and other related applications. In contrast to a pure model-based approach, Interactive Data’s market-based evaluation approach is designed to promote credibility among auditors, stakeholders and regulators. In addition, our approach to producing CDS evaluations is underpinned by our robust quality-control processes, broad experience and sophisticated market data infrastructure, all of which enabled us to become the gold standard in producing independent fixed income evaluations.
- Unique, Proprietary Methodology –Our new CDS Evaluation Service for single name, corporate and sovereign CDS leverages our position as an award-winning provider of fixed income evaluated pricing. Our CDS evaluation methodology incorporates dealer CDS quotes and composite valuations augmented by information from related markets including Interactive Data’s corporate bond evaluations. Our evaluators review critical information, including underlying credit and interest rate curves, to form opinions of value.
- World-Class Service & Support – Access to a range of responsive support services … In addition to timely information resources and other web-based tools, clients are able to interact with our CDS evaluators as well as utilize our Evaluated Pricing Challenge Portal, an online platform for reporting and monitoring evaluation challenges. Additional transparency into CDS and CDS Index evaluations will be supported by VantageSM, Interactive Data’s Web application that provides clients with extensive data and transparency into the fixed income market and the Company’s evaluations.
Interactive Data’s proprietary methodologies produce evaluations that can be considered as part of portfolio valuation processes to meet fair value requirements, address the demands of risk and portfolio management, and comply with regulations and accounting standards.
IRD: Pricing and Valuations Special Report. Read now.