INTRODUCTION


The pricing, valuations and market data sector has become a strategically important area for financial institutions over recent years, particularly since the financial crisis. New regulations, such as prudent valuations in Europe and the varied regulatory mandates in North America present significant challenges. And in an area that is viewed as a cost-centre, reliable and independent sources of analysis can often be time-consuming and expensive to obtain.


"Finally, independent coverage for pricing & valuations
"

This new (and free!) service from SCI attempts to address these problems to provide this underserved sector with fresh market intelligence, offering:

  • Analysis of the issues and trends emerging from the structural market changes that IPV and pricing professionals face
  • Deep dives into market data to identify key trends you can act on
  • Interviews with key players to help you identify common issues
  • Analysis and case studies to help observational learning
  • A regular digest of material to ensure your needs are consistently met.


...and when you sign up, you'll be asked to tell us two key challenges you face - it's great opportunity for more insight as we'll cover the most frequent challenges cited in future articles.

 

Articles published so far in the series have been published for you, below. You will need to register, but not pay, for this content.

Ultimately, this is your sector and most of the ideas we will publish are yours. Therefore look out for further announcements as we build a community of valuations professionals through PriceABS Insights to help executives develop better relationships, and facilitate a forum for problem-solving and intelligence-sharing.

And as the community grows, we will listen out for individual ideas for extending our coverage and the network.

Any questions? Don't hesitate to get in touch.

 

Featured Articles


Bridging the gap

Neutralising NPL valuation discrepancies addressed

Friday 3 February 2017 11:24 London/ 06.24 New York/ 19.24 Tokyo

Achieving valuations that satisfy both sellers and investors has been a major sticking point in many recent European non-performing loan transactions. This has been most notable in Italy, where the wi...


Varied approaches

Retained risk valuation practices gauged

Thursday 19 January 2017 09:13 London/ 04.13 New York/ 17.13 Tokyo

The horizontal retention piece of a securitisation could be considered the very definition of a Level 3 asset: rarely traded – if ever – with very limited market information. Subje...


Fair value credential introduced

Friday 13 January 2017 09:15 London/ 04.15 New York/ 17.15 Tokyo

A new credential intended to enhance the quality, consistency and transparency of fair value measurement results in financial reporting has been launched. The Certified in Entity and Intangible Valuat...


Coupon clippers

Euro CLO refi activity to accelerate

Friday 16 December 2016 09:17 London/ 04.17 New York/ 17.17 Tokyo

Refinancing activity is expected to accelerate in Europe in the coming year as the cost of funding encourages more CLO managers to employ the option. Anticipating the impending refinancing wave is dee...


Odd-lot strategies

Price exploitation likely more widespread

Monday 12 December 2016 07:23 London/ 02.23 New York/ 15.23 Tokyo

The US SEC recently fined PIMCO US$20m for misleading investors about the value of MBS odd lots in its BOND Total Return ETF. Valuing odd lots – particularly MBS – can be somewhat...


Evolving analytics

Valuation and risk landscape discussed

Tuesday 6 December 2016 16:09 London/ 11.09 New York/ 00.09 (+ 1 day) Tokyo

FINCAD has recently incorporated MBS into its F3 pricing, valuation and risk analytics solution. SCI asked James Church, vp, product management and R&D at FINCAD, about the challenges of bring...


Premium pricing

Above-par issuance techniques explored

Tuesday 22 November 2016 09:26 London/ 04.26 New York/ 17.26 Tokyo

Above-par issuance is becoming a staple of the European primary ABS market. Deals backed by auto loans, mortgages and credit cards have recently tested the water with this pricing concept, paving the...


Transfer pricing

Italian ABS hindered by NPL valuation issues

Friday 11 November 2016 16:49 London/ 11.49 New York/ 00.49 (+ 1 day) Tokyo

The securitisation of non-performing loans (NPLs) has been deemed a credible solution for Italian banks seeking to offload the assets from their balance sheets. Just one deal has launched to date, how...


Uncertain intentions

Valuers assess US election implications

Thursday 10 November 2016 08:52 London/ 03.52 New York/ 16.52 Tokyo

The US has had its 'Brexit moment', according to a panel of valuations experts at a Duff & Phelps press briefing in London yesterday (9 November). However, while the timing of the Brexit vote...


External mandates

Growing number of AIFMs consider external valuers

Monday 7 November 2016 09:10 London/ 04.10 New York/ 17.10 Tokyo

Since AIFMD came into force, institutions have interpreted the requirement for the 'proper and independent' valuations of an alternative investment fund's assets in different ways. The majority carry...


Bail-in priced in?

European bank CDS put to the test

Tuesday 25 October 2016 09:12 London/ 04.12 New York/ 17.12 Tokyo

Mounting concerns over Deutsche Bank's financial health, along with bail-in speculation have coincided with significant widening in the bank's CDS – both at a senior and subordinated level....


Liquidity review

Fund valuation considerations highlighted

Friday 21 October 2016 10:12 London/ 05.12 New York/ 18.12 Tokyo

The use of liquidity data in determining asset values is subject to increasing industry analysis and the US SEC's finalisation of its liquidity risk management rules will likely focus attention on thi...


Changing places

Consultancies driving European valuation recruitment

Monday 10 October 2016 12:52 London/ 07.52 New York/ 20.52 Tokyo

Valuation consultancies have been a key recruitment growth area over the past year – either through incumbent firms expanding their headcount or as a result of new market entrants. Valuation...


Plan B

Contingent NAV strategies readied

Tuesday 4 October 2016 14:51 London/ 09.51 New York/ 22.51 Tokyo

Over a year has passed since BNY Mellon suffered its NAV outage, resulting in almost a week of NAV calculation disruption for hundreds of funds. With increased emphasis on the need for a contingent &a...


Liquidity focus

Frank Dos Santos, head of North America business strategy for fixed income pricing at IHS Markit, answers SCI's questions

Thursday 29 September 2016 14:55 London/ 09.55 New York/ 22.55 Tokyo

Q: How and when did your firm become involved in the pricing and valuations business? How has the service evolved in recent years? A: Markit was founded in 2002 as a pricing service for CDS. From the...


Horizontal interest

Sponsors assess horizontal risk retention benefits

Friday 16 September 2016 11:01 London/ 06.01 New York/ 19.01 Tokyo

An increasing number of US sponsors are expected to retain a horizontal rather than a vertical risk slice in upcoming securitisations, despite complexities around valuation and disclosure of the resid...


Housing boost for Spain

Tuesday 13 September 2016 09:17 London/ 04.17 New York/ 17.17 Tokyo

The bottoming-out of house prices in Spain will reduce the expected severity of mortgage defaults, resulting in the improvement of the performance of Spanish RMBS, SME ABS and covered bonds, according...


Internal versus external

Third-party valuation engagements assessed

Tuesday 30 August 2016 08:54 London/ 03.54 New York/ 16.54 Tokyo

The AIFMD's stipulation that alternative investment funds must engage the services of a third-party valuation firm has prompted a growing trend for independent firms to be employed as part of a fund's...


Auditing issues

Subordinate assumptions, transparency examined

Tuesday 26 July 2016 10:43 London/ 05.43 New York/ 18.43 Tokyo

Auditing the accuracy of a client's most complex fair value measurements is no mean feat. There are several factors that make the process more challenging, however. Top of the list is the ability to g...


Reputation management

Side pocket pros and cons debated

Tuesday 12 July 2016 14:45 London/ 09.45 New York/ 22.45 Tokyo

Side pockets are a portfolio management tool that can benefit both investors and managers alike. But having fallen from grace in the wake of the financial crisis, it is debatable whether they can rega...


Reclassification challenges outlined

Thursday 30 June 2016 12:34 London/ 07.34 New York/ 20.34 Tokyo

A number of financial institutions have reclassified their structured finance books in accordance with IFRS 9, in order to carry out parallel runs in 2017. Although the formal implementation of IFRS 9...


Credible values

AIFMs evaluate Brexit implications

Wednesday 29 June 2016 14:45 London/ 09.45 New York/ 22.45 Tokyo

Alternative investment fund managers (AIFMs) are facing a number of uncertainties following the UK's vote to leave the EU. Their immediate attention will be focused on how to reflect the Brexit result...


Euro SF risk overestimated?

Monday 6 June 2016 14:46 London/ 09.46 New York/ 22.46 Tokyo

The amended external ratings based approach (EBRA) for calculating regulatory capital changes in European structured finance (SF) transactions has come under scrutiny in a recent report from Scope Rat...


Fair value?

Call for standardised approach to MPL valuations

Tuesday 31 May 2016 14:47 London/ 09.47 New York/ 22.47 Tokyo

In a sector where there is no standardised pricing methodology or standardised pricing reference data, a wide variety of approaches are currently being used to value marketplace loans (MPL) and peer-t...


Transparency drive

Robert Vincini, head of pricing service specialists at Thomson Reuters, answers SCI's questions

Monday 23 May 2016 11:38 London/ 06.38 New York/ 19.38 Tokyo

Q: How and when did your firm become involved in the pricing and valuations business? How has your service evolved in recent years? A: We started in 1991 as EJV Partners (Electronic Joint Venture). R...


Call for clarity

Valuation uncertainty adds to liquidity debate

Monday 16 May 2016 17:18 London/ 12.18 New York/ 01.18 (+ 1 day) Tokyo

Banks' diminished market-making capacities and shrinking inventories are taking their toll on liquidity, particularly in the ABS and structured credit markets. However, a lack of clarity over valuatio...


IFRS 9 calculation warning

Tuesday 10 May 2016 14:47 London/ 09.47 New York/ 22.47 Tokyo

A recent study undertaken by Kamakura Corporation underlines the risks of using credit spreads to assess obligor creditworthiness in light of the upcoming IFRS 9 implementation and the FASB's current...


Compromised compliance

Buyside valuation controls scrutinised

Tuesday 3 May 2016 11:52 London/ 06.52 New York/ 19.52 Tokyo

It is almost two years since the transitional period for AIFMD expired in Europe and the majority of AIF managers now consider themselves to have addressed the directive's requirements. However, as ev...


Efficiency drive

Offshoring, automation shaping new IPV landscape

Monday 25 April 2016 11:16 London/ 06.16 New York/ 19.16 Tokyo

Pricing and valuation operations have become an increasingly essential component of investment banks since the financial crisis, particularly within structured credit. However, as banks strive to cut...


IMA-CVA abandoned

Industry disappointed by CVA framework revision

Monday 18 April 2016 11:18 London/ 06.18 New York/ 19.18 Tokyo

The Basel Committee's recent decision to drop the use of IMA-CVA from its proposed CVA risk framework has taken many in the industry by surprise. The move is also likely to disappoint institutions tha...


Consolidation concerns

M&A may compromise pricing vendor choice and innovation

Wednesday 13 April 2016 13:40 London/ 08.40 New York/ 21.40 Tokyo

The consolidation of evaluated pricing firms poses a number of concerns for the securitisation and derivatives markets. A diminishing number of independent pricing points, the potential for higher ser...


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