S&P Valuation and Risk Strategies to Provide Odd Lot Pricing for Taxable Fixed Income Securities

NEW YORK, July 13 /PRNewswire/ -- S&P Valuation and Risk Strategies, an independent and analytically separate business unit within Standard & Poor's that provides users with market intelligence and analytic insight for risk-driven investment analysis, has expanded its odd lot securities evaluations capabilities beyond municipal bonds to provide odd lot pricing for U.S. corporate bonds and U.S. structured finance instruments.  

Designed to give retail market participants a perspective on the current value of their fixed income holdings, the new odd lot pricing service uses the size of a holding as an input in determining bond valuations.  In today's marketplace, this perspective into the elemental components of retail based securities valuation is useful in helping market participants maintain a balance between mark-to-market pricing for institutional lot size trades and other market pressures that can impact the valuation process for retail holders.

Values are calculated using a formula that adjusts dollar values based on lot size, current institutional price and the maturity of the underlying security.  Corporate bonds and U.S. structured finance instruments are pegged to a twenty-five bond lot for the calculation of an odd lot price.

"We have developed a method of evaluating odd lot fixed income securities that we believe uses the same techniques that a retail participant would," said Frank Dos Santos, Vice President, S&P Valuation and Risk Strategies.  "This level of transparency between buy-side and sell-side is useful for investors to get an understanding of their fixed income valuations."

Initially disseminated to Valuation and Risk Strategies customers through a data feed, the odd lot pricing data will soon be incorporated into a Web-based solution that allows users access to current and historical data through a search engine or one-by-one lookup.  Future expansion of the odd lot pricing service is expected to include certificates of deposit and European non-structured and structured finance.

About S&P Valuation and Risk Strategies

S&P Valuation and Risk Strategies delivers a portfolio of products and services to investors that serve the global financial markets by providing market intelligence and analytic insight for risk driven investment analysis, including for the debt, structured finance, derivative and credit markets. S&P Valuation and Risk Strategies is analytically and editorially independent from any other analytical group at Standard & Poor's, including Standard & Poor's Ratings Services.  The unit has no access to non- public information received by other units of Standard & Poor's. Standard & Poor's does not trade on its own account. 

Evaluated pricing is provided by Standard & Poor's Securities Evaluations, Inc. (SPSE), a part of S&P Valuation and Risk Strategies and a registered investment adviser with the United States Securities and Exchange Commission.  SPSE provides fixed-income evaluations and analyses of certain U.S. and European fixed income securities using its proprietary Risk-to-Price scoring methodology.  SPSE is analytically and editorially independent from any other analytical group at Standard & Poor's.

Products and services provided by SPSE may not be available in all countries or jurisdictions.

About Standard & Poor's

Standard & Poor's Financial Services LLC, a subsidiary of The McGraw-Hill Companies (NYSE: MHP), is the world's foremost provider of independent credit ratings, indices, risk evaluation, investment research and data. With offices in 23 countries and markets, Standard & Poor's is an essential part of the world's financial infrastructure and has played a leading role for 150 years in providing investors with the independent benchmarks they need to feel more confident about their investment and financial decisions. For more information, visit www.standardandpoors.com.

Standard & Poor's and its affiliates provide a wide range of services to, or relating to, many organizations, including issuers of securities, investment advisers, broker-dealers, investment banks, other financial institutions and financial intermediaries, and accordingly may receive fees or other economic benefits from those organizations, including organizations whose securities or services they may recommend, rate, include in model portfolios, evaluate or otherwise address.

SOURCE Standard & Poor's

WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM?

440k+
Newsrooms &
Influencers

9k+
Digital Media
Outlets

270k+
Journalists
Opted In

GET STARTED