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S&P Global Market Intelligence Unveils Expanded Loan Pricing Solution

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S&P Global Market Intelligence has launched an enhanced Evaluated Loan Pricing solution, offering independent and transparent pricing for over 8,000 leveraged loans globally. This service provides expanded coverage, delivering single price points for both composite and evaluated loans.

The solution aims to support trading, valuations, and risk management, furnishing portfolio managers and traders with valuable insights to better understand holdings, track price movements, and compare loans with similar characteristics. It also assists risk managers in assessing portfolios and making informed decisions about holding or divesting positions.

Utilizing contributor-based pricing engines and sophisticated parsing technology, the service includes bid-offer pricing, analytics, and mapping for over 400,000 industry identifiers. With over twenty years of historical data, the product is accessible via a secure web interface and can be integrated into existing workflows.

Positive
  • Expanded coverage of over 8,000 leveraged loans globally.
  • Offers independent and transparent pricing, aiding in trading, valuations, and risk management.
  • Provides valuable insights for portfolio managers and traders.
  • Supports risk assessment and decision-making for managers.
  • Includes bid-offer pricing and analytics.
  • Utilizes contributor-based pricing engines and sophisticated parsing technology.
  • Backed by over twenty years of historical data.
  • Secure web interface and easy integration into existing workflows.
Negative
  • None.

Insights

S&P Global Market Intelligence's new Evaluated Loan Pricing solution offers extended coverage for over 8,000 leveraged loans, which is a significant development for market participants. From a financial perspective, this service provides greater transparency and reliability in loan pricing, which is critical for accurate trading and valuation.

By covering a vast array of loans previously unavailable, this solution promises to enhance the overall market liquidity and reduce information asymmetry among traders and portfolio managers. This can lead to better price discovery and more informed investment decisions.

However, it's essential to consider the potential impact on market volatility. While transparency is generally positive, increased information flow could result in more pronounced market reactions to both good and bad news. Investors should be prepared for the potential uptick in market volatility as this new data is assimilated into trading activities and valuation models.

Overall, the benefit of increased transparency and improved liquidity is expected to outweigh potential short-term fluctuations in the market, making this a positive development for stakeholders.

From a risk management perspective, the expanded loan pricing solution by S&P Global Market Intelligence is a valuable tool. It offers independent bid-offer pricing and analytics, which can significantly enhance risk assessment processes. Risk managers can now make more informed decisions regarding portfolio adjustments, rebalancing and risk exposure based on reliable data.

The integration of historical data spanning over twenty years provides a robust foundation for trend analysis and stress testing. This allows risk managers to perform comparative analysis and predict potential default risks or market shifts more effectively.

However, it's important to note that the sheer volume of data and its integration into existing workflows can pose challenges. Companies will need to ensure that they have the requisite data integration and analysis capabilities to fully leverage this solution.

In summary, the new pricing solution enhances risk management capabilities, but its effectiveness will depend on the user's ability to integrate and analyze the data effectively.

This new solution by S&P Global Market Intelligence brings a deeper market insight for portfolio managers and traders, especially with its reach extending to a broader set of leveraged loans. The ability to track price movements and compare loans with similar characteristics offers significant strategic advantages to market participants.

Beyond just pricing, the solution's mapping for over 400,000 industry identifiers provides an extensive database for market research. This can help analysts identify emerging trends and shifts within specific industries, potentially opening up new investment opportunities.

One aspect to watch is how effectively users can utilize the secure web interface. The ease of integration into existing workflows will be critical for widespread adoption. If users find the interface user-friendly and the integration seamless, it could significantly enhance their daily operations and strategic decision-making processes.

Ultimately, this solution promises to deliver substantial benefits in terms of market transparency and data-driven insights, making it a promising addition to the financial tools available to market participants.

Independent loan pricing solution designed to support trading, valuations, and risk management

LONDON, July 9, 2024 /PRNewswire/ -- S&P Global Market Intelligence has announced the launch of its new Evaluated Loan Pricing, enabling market participants to benefit from a much-expanded loan pricing solution. Offering greater transparency to the market, the new expanded service now provides independent and transparent pricing for more than 8,000 leveraged loans worldwide.

"We are excited to introduce our enhanced loan pricing solution, which takes our product to the next level," said Tasha Gonska, Managing Director at S&P Global Market Intelligence. "The new solution provides expanded coverage to a set of a loans that historically was not available to participants. This solution is an extension to our composite based pricing service and will offer a single price for a loan be it composite or evaluated. 

Tasha added, "Our new product also offers valuable insights to portfolio managers and traders by allowing them to better understand the value of holdings, track price movements, and compare loans with similar characteristics. Additionally, risk managers can also assess their portfolios and make decisions around holding or divesting a given position based on value and issuer to peer comparison."

The loan pricing solution offers independent bid-offer pricing and analytics on leveraged loan facilities worldwide, as well as mapping for over 400,000 industry identifiers. Built based on contributor-based loan pricing engines, sophisticated parsing technology, and supplemented with an evaluated methodology.

S&P Global Market Intelligence's enhanced loan pricing solution is backed by over twenty years of historical data and is supported by a team of dedicated loan pricing specialists. It is available through a secure web interface and can be easily integrated into existing workflows.

About S&P Global Market Intelligence

At S&P Global Market Intelligence, we understand the importance of accurate, deep and insightful information. Our team of experts delivers unrivaled insights and leading data and technology solutions, partnering with customers to expand their perspective, operate with confidence, and make decisions with conviction.

S&P Global Market Intelligence is a division of S&P Global (NYSE: SPGI). S&P Global is the world's foremost provider of credit ratings, benchmarks, analytics and workflow solutions in the global capital, commodity and automotive markets. With every one of our offerings, we help many of the world's leading organizations navigate the economic landscape so they can plan for tomorrow, today. For more information, visit www.spglobal.com/marketintelligence.

Media Contact
Sabrina Mayeen
P. +44 (0)20 7176 0495
E. 
Sabrina.Mayeen@spglobal.com

 

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SOURCE S&P Global Market Intelligence

FAQ

What is S&P Global Market Intelligence's new Evaluated Loan Pricing solution?

The Evaluated Loan Pricing solution is a new service from S&P Global Market Intelligence, offering independent and transparent pricing for over 8,000 leveraged loans globally.

How does the new loan pricing solution support portfolio managers?

The solution provides insights to better understand holdings, track price movements, and compare loans with similar characteristics, aiding portfolio managers in their decision-making.

What are the key features of the new S&P Global loan pricing solution?

Key features include independent bid-offer pricing, analytics, and mapping for over 400,000 industry identifiers, using contributor-based pricing engines and sophisticated parsing technology.

How is the new loan pricing solution accessed?

The solution is available through a secure web interface and can be easily integrated into existing workflows.

What historical data supports the new loan pricing solution by S&P Global?

The solution is backed by over twenty years of historical data.

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