"What is the point of SCI PriceABS?"

SCI's proprietary pricing methodology offers calculations for DM/Yield and WAL against BWIC Covers, which, when combined with an insightful daily market commentary from SCI's analysts, offers you a unique combination of market colour:

  • Independent daily DMs on Debt, and Yields on Equity
  • Proprietary methodologies already deployed on client ABS/CLO valuations
  • Timely daily market commentaries and trends
  • History of DMs and Yields fully exposed
  • Access to analysts for specific trade colour / assumptions
  • Service available as an app via Bloomberg: GO
  • Further functionality and pricing visualisation on the way
     

 

“I often see DMs from broker-dealers, isn’t that enough?”

Relying on dealer DMs is not always a thorough pricing solution. You will not always have visibility or access to the dealer that sent you a DM and hence the assumptions made. Dealers do not back out DMs for all debt tranches, they only do it when they have time since it is not a core activity, whereas it is a core activity for SCI. Dealers rarely, if ever, publish yields on CLO equity.  

SCI calculates DMs & Yields on all observed trades using a proprietary methodology and stores all such data points in a relational database of over 500,000 prices that can be queried when you need evidence to back up your valuations or if you want to see trends and do further analyses. Since these DMs/Yields are the fundamental basis on which all trading and valuation takes place, seeing more than one set of numbers presents a more thorough and less risky workflow process, and what's more using independent DMs/Yields for pricing processes is preferred by regulators.

For a FREE trial of PriceABS simply enter APPS SCI GO in your Bloomberg terminal

Get in touch today for a trial

×