Reduce risk and improve portfolio management with a fully hosted, industry-validated portfolio valuations service
IHS Markit has been serving the buyside since 2005 with our Portfolio Valuations services. We started with vanilla derivative valuations and then extended across asset classes and underlying markets. Today, we cover an extensive range of financial instruments, including complex and illiquid products, vanilla and exotic derivatives, private equity investments, structured notes and cash products. These valuations are distributed via a single platform alongside clearing prices and counterparty marks.
Customers choose our valuation and risk analysis services for the accuracy and transparency of our results, the comprehensive coverage we provide through a single interface, and our expert and timely support across all regions.
We deliver cost-effective solutions for portfolios of any size and composition and can offer reliable same-day turnaround to meet customer needs.
Accuracy – Leverage consensus data from more than 70 banks for calibration of in-house valuation models to market levels, supplemented with data from exchanges, clearing houses and interdealer brokers
Dedicated support – Benefit from 24/5 access to a global team of experienced valuation analysts, product specialists and financial engineers, who provide rapid resolutions to queries, confirmation requests and price challenges
Reliability – Depend on SSAE 16 and ISAE 3402 Type II audited valuation processes, including market data capture and cleansing, trade loading, valuation tolerance checks, and delivery of results, with any alerts investigated by our analysts, including verification of unexpected P&L movements before results are released to clients
Transparency – Gain insight with a complete view of valuation inputs and underlying market data available via the web front end, along with fully documented methodologies, models and valuation processes
Flexibility – Customize data snap times, report frequencies, formats and content, as well as fee structures, to fit valuation and business requirements
Independent data – Rely on independently sourced market data, with industry standard pricing models built in house and unbiased valuations, as IHS Markit is not involved in the structuring, sale, trading or management of derivatives or securities
Applications & Coverage
Customers typically use Portfolio Valuations directly, or to provide these value-added services to their clients for the following:
Net Asset Value (NAV) calculations
Collateral/margin verification and dispute resolution
Independent price verification or internal benchmarking
Automation of manual or ad-hoc processes, such as in-house spreadsheet valuations
Stress testing and scenario analysis for risk management and regulatory compliance
Outsourcing the valuation or risk measurement function
Collection and aggregation of counterparty marks
Sourcing centrally cleared prices across all active CCPs
Equities – Options, indices, dividend, variance, volatility and correlation swaps and other exotic structures
Credit – CDS, TRS, indices, options, synthetic CDOs and CLNs
Centrally cleared derivatives – Price redistribution agreements with ICE, CME, LCH, JSCC and other central counterparties
FX – Spot, forwards, NDFs, FVAs, swaps, options and exotic structures across major and emerging market currencies
Commodities – Forwards, swaps and options on physical and financial commodities
Structured products – Most types of interest rate, credit, equity, FX and hybrid structures, including TARNs, autocallables and PRDCs
Cash products – Evaluated prices for bonds and consensus pricing for loans and structured finance including ABS/MBS products
Alternative Investment Funds
Sovereign wealth funds
Case Study: Northern Trust – Outsourced valuations
Northern Trust has been using IHS Markit as an outsourced OTC derivative valuations provider for more than five years, seamlessly integrating IHS Markit valuations into its core asset servicing platform. Our Portfolio Valuations service is an important source for Northern Trust’s NAV and collateral calculations across a broad range of OTC derivatives. The accuracy of the valuations, as well as a high level of support, has resulted in fewer price challenges and improved operational efficiency.
View case study
Connectivity: MarkitSERV has integrated real-time trade data feeds into Portfolio Valuations
Customers can now benefit from the integration of trade data and derivatives valuations to support regulatory reporting and risk management. The connectivity between MarkitSERV and Portfolio Valuations allows clients to create a more streamlined, error-free and real-time process for valuing derivatives. It eliminates the need to build a separate trade feed to the valuations platform while reducing costs, onboarding times and valuation discrepancies. Learn more.
International accounting standard IFRS 13 requires the reporting of CVA and debit value adjustment (DVA) when determining the fair value of OTC derivatives. Auditors and regulators are now increasing scrutiny of the accuracy and robustness of CVA and DVA calculation assumptions, methodologies and input market data.
IHS Markit offers a hosted, post-trade risk calculation service that provides the buyside an accurate view of market risk exposures across their portfolios, in addition to the standard sensitivity measures provided with each mark-to-market valuation.
Faced with changes in regulations, accounting standards, investor reporting and risk management practices, financial firms need a better understanding of their exposure to various market factors as well as accurate measures of liquidity, funding and market risk.