CMA, Julius Finance Enhance Tranche Valuations
May Tue 20 2008 at 12.26 pm
CMA, the credit information specialist, today announced a partnership with New York based research and technology firm, Julius Finance to provide term structures for CDX and iTraxx index tranches and tranchelets.
The deal combines observed data from CMA's unique buy-side consortium combined with the advanced mathematical modelling capabilities of Julius Finance's, JuliusBridgeTM service. The full data set will be accessible through CMA DataVision.
Ongoing volatility in the OTC credit market has lead to an increased demand from buy-side institutions for a market standard pricing model and this will be the first time that a consistently accurate, independent model for calculating notoriously complex tranche values has been made widely available.
"CMA is committed to providing greater price transparency in the OTC credit market,"
"Combining data from CMA's buy-side consortium with the advanced technologies of Julius Finance empowers investors and risk managers with a more accurate and reliable view of tranche values as, until now, derived quotes have been calculated from prices that were not market traded but sourced from sell-side institutions." said Laurent Paulhac, CMA's CEO.