CMS BondEdge Enhances Credit Risk Capabilities; Portfolio Versus Benchmark Functionality and Individual Bond History Now Included.Business Editors LOS ANGELES--(BUSINESS WIRE)--March 5, 2003 CMS (1) See content management system and color management system. (2) (Conversational Monitor System) Software that provides interactive communications for IBM's VM operating system. BondEdge, an operating division of Interactive Data Corporation (NYSE NYSE See: New York Stock Exchange : IDC) and a leading provider of fixed income portfolio analytics, today announces expanded credit risk management capabilities in its flagship product A primary product of a company, which is typically why the company was founded and/or what made it well known. For example, MS-DOS, Windows and the Microsoft Office suite have been flagship products of Microsoft. CorelDRAW is a flagship product of Corel Corporation. , BondEdge. In addition to existing credit risk analytics, which combine information from CreditGrades(TM) by RiskMetrics Group with proprietary CMS BondEdge data, new portfolio versus benchmark functionality and daily credit risk histories are also now available. Teri Geske, senior vice president of product development for CMS BondEdge, comments, "In addition to existing reports which show current spread levels and spread volatility for your corporate holdings versus a 90-day average and standard deviation In statistics, the average amount a number varies from the average number in a series of numbers. (statistics) standard deviation - (SD) A measure of the range of values in a set of numbers. for each bond in the portfolio, as well as a theoretical probability of default Probability of default (PD) is a parameter used in the calculation of economic capital or regulatory capital under Basel II for a banking institution. This is an attribute of bank's client. , the new functionality allows you to compare this same information, at the sector level, to the credit component of your chosen benchmark. You might discover, for example, that spreads in a particular industry are becoming more volatile, or that your portfolios' exposure to a given industry versus the average holdings in a broad index is potentially much more risky (as measured by theoretical default probability) - all these could serve as invaluable early warnings. Graphing capabilities are extremely useful to quickly highlight outliers among a large population or across sectors." Daily histories of prices, yields and option-adjusted spreads Option-adjusted spread (OAS) (1) The spread over an issuer's spot rate curve, developed as a measure of the yield spread that can be used to convert dollar differences between theoretical value and market prices. for corporate bonds on an individual holdings-basis are also now available, in addition to implied credit default spreads and default probabilities supplied by CreditGrades. These daily histories allow for detailed trend analysis as well as bond-to-bond comparisons for relative value analysis. Laurie Adami, president of CMS BondEdge, comments, "The new reports, which provide credit risk results relative to a given benchmark, are essential for total return-oriented managers - especially given the current environment where idiosyncratic risk Idiosyncratic Risk Risk that affects a very small number of assets, and can be almost eliminated with diversification. Similar to unsystematic risk. Notes: This is news that is specific to a small number of stocks. One example is a sudden strike by employees. is so prevalent. The knowledge we have gained in more than twenty years TWENTY YEARS. The lapse of twenty years raises a presumption of certain facts, and after such a time, the party against whom the presumption has been raised, will be required to prove a negative to establish his rights. 2. of servicing the buyside, plus the fact that many of the critical elements needed to deliver this functionality were already in place, allowed us to readily adapt the BondEdge product." The new reports were recently unveiled during a live web seminar on "Modeling and Managing Credit Risk", hosted by CMS BondEdge. More than 125 fixed income portfolio managers registered. For copies of the presentation please contact Lisa Herbert. About CMS BondEdge: For over 20 years, CMS BondEdge has been recognized as a leader in fixed income analytical software Analytical software is software that is designed specifically for and development of a particular environment or object. . Long known for the BondEdge system, CMS BondEdge is trusted as an independent source of research, analytics and valuation tools by over 550 institutions in the U.S. and Canada. CMS BondEdge is an affiliate of FT Interactive Data and division of Interactive Data Corporation (NYSE: IDC), a leading global provider of financial and business information to institutional and individual investors. More information on CMS BondEdge is available at www.cmsbondedge.com. Corporate information on Interactive Data Corporation is available at www.interactivedatacorp.com. About Risk Metrics Group: RiskMetrics Group provides financial analytics and wealth management solutions to hundreds of financial institutions, corporations and central banks This is a list of central banks. Contents A B C D E F G H I J K L M N O P Q R S T U V W Y Z worldwide. Since 1994, RiskMetrics Group research has set the standard for financial risk management. RiskMetrics Group analytics, data and services enable users to measure and manage risk, and to communicate that risk to managers, clients, investors, shareholders and regulators. Formerly a division of JP Morgan, RiskMetrics Group became an independent company in 1998. The company is headquartered in New York City New York City: see New York, city. New York City City (pop., 2000: 8,008,278), southeastern New York, at the mouth of the Hudson River. The largest city in the U.S. , with seven offices worldwide, including London, Tokyo and Singapore. |
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