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Pricing & Valuation Archives - Indus Valley Partners

How to Efficiently Manage Curve Data Throughout Your Pricing Process

How to Efficiently Manage Curve Data Throughout Your Pricing Process

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Curves and their associated data points are an integral part of the pricing process. These curves – interest rate, forward, volatility, swap, etc. – are often used as standalone prices but also act as a required input to price complex securities and as a source of useful information for multiple systems like risk, performance and front-office applications. Creating and maintaining these curves, however, becomes a very difficult and manually intensive task for funds due to the extra bandwidth required from both technical and pricing teams. Fortunately, analysis suggests there are many areas throughout the process that can be streamlined and automated, such as:

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A case for automation while Trading Structured Credit

A Case for Automation While Trading Structured Credit

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Our last two blogs on structured credit covered in detail the ever-evolving complexities involved in pricing structured instruments, especially during the pandemic. Luckily, these complexities can be managed with the introduction of automation to improve efficiency and transparency throughout the pricing process, thus leading to the generation of alpha. There are several areas within the pricing process that can be streamlined and automated as indicated below:

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Impact of COVID - 19 on Pricing Structured Credit

Impact of COVID-19 on Pricing Structured Credit

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COVID-19 has drastically changed the world and its economy in unprecedented ways. With a specific focus on the financial industry, the pandemic has caused securitized credit instruments to face a much higher risk of credit downgrade and default. This risk is due to the decreased ability of the counterparty to honor payment obligations and to make matters worse given the current situation, lower valuations and changing credit ratings pose an additional challenge in the pricing process. Throughout this blog, we will explore a few aspects involved in the process of pricing structured credit instruments to help you navigate these uncertain times.

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