The market for evaluated bond pricing is dominated by the major data vendors, Bloomberg, ICE Data Services, IHS Markit and Thomson Reuters. This segment of the industry has consolidated over the last few years, with these large players acquiring smaller providers to enhance their offerings and increase market share.
This consolidation has caused some anxiety amongst users of these services, with concerns about a reduction in competition with all that possibly means for pricing and innovation. This is especially true in some specific asset classes, such as municipal bonds and mortgage backed securities, where alternative options are few.
Despite the consolidation of sources, there remain a range of niche vendors who are operating in the evaluated bond pricing business. Some of these are relatively new entrants, and are using new technology and methodology to offer cost effective alternatives to the big beasts.
To help clients understand these issues, and their options when it comes to evaluated bond pricing, Voltaire Advisors hosted a webinar on the topic on November 20th. Speakers included:
The webinar will be accompanied by a Special Report on the topic looking at the subject in more detail. This initiative is part of our Current Issues in Valuation series, which looks at the challenges and topical issues of valuation in a range of asset classes.
Eric Reichenberg is Managing Director of Valuations and Market Data Services at SS&C GlobeOp. He joined SS&C GlobeOp in 2007. Based in New York City, Eric leads global teams responsible for valuation controls, analytics, market data and corporate actions services
Previously, Eric spent 5 years at State Street Corporation as Chief Operating Officer for its risk management services business unit. Prior to State Street, Eric was Head of Product Management for risk management applications at Wall Street Systems.
Eric earned an MBA in Finance from the New York University Stern School of Business and a BSFS in International Economics from the School of Foreign Service at Georgetown University.
Joshua R. Hershman is the Chief Operating Officer of Trumid, a New York-based, financial technology firm that designs, develops, and operates financial services software and trading applications. Founded in 2014, Trumid is a FINRA-registered broker/dealer and SEC-registered Alternative Trading System (ATS). As a founding partner, Josh has helped conceive, grow, and manage Trumid’s core electronic corporate bond trading business and accompanying data products.
Josh is active within the fintech space and is a member of FINRA’s FinTech Industry Committee. He is a frequent panelist on topics related to corporate bond market structure and electronic trading development.
Prior to joining Trumid, Josh traded or oversaw corporate bond and credit default swaps (CDS) for Merrill Lynch, Goldman Sachs, and Barclays, including a role as head of US credit for Barclays non-core bank. Josh graduated from the University of Pennsylvania and holds a certificate in Investments from MIT. He holds the Series 7, 24, 53, 55 and 63 licenses.
Darragh is one of the co-founders of Corvid Partners Ltd, an independent illiquid credit valuation firm. He has more than 20 years of experience in trading, marketing and structuring illiquid fixed income securities. He has worked on both sides of the capital markets fence, managing a €4 billion credit portfolio for a German Hypothekenbank before working for two of the world’s largest investment banks, Merrill Lynch and Barclays Capital.
Corvid Partners specialises in valuing the most illiquid end of the fixed income market. Clients include some of the largest investment banks, pension funds, data managers and government agencies in the world. The firm works with these clients in multiple regions and business lines including risk management, regulatory capital management and bilateral secured financing.
In total, Corvid values over 14,000 securities each week, amounting to over $850 billion in issued principal.
Sourav Srimal is Head of Global Operations of Valuations and Reference Data Services at Best Credit Data. AdvantageData has made a strategic investment at BCD. Sourav joined AdvantageData.in 2006. Based in Boston, Sourav leads global teams responsible for reference data, valuation and analytics.
Best Credit Data is among the first Born-in-the-cloud automated evaluated pricing service. BCD specializes in pricing both liquid and illiquid fixed income securities including Municipals, Corporates, Private Placements, Syndicated and Middle Market Securities.
Best Credit's value-add in the industry is its ability to intake large amounts of data and apply it in a manner consistent with traditional valuation methodology. This helps BCD price the most illiquid credits given minimal requisite data inputs. In this way, BCD sits between a traditional market data vendor and full service valuation firm.