OTC derivative valuation experts SuperDerivatives have responded to the short term liquidity crisis by releasing a new version of their on-line credit derivatives platform, SD-CD.
SuperDerivatives claims the new version "represents a substantial increase in the level of functionality, price-transparency and analytic power compared to that offered by currently available solutions - addressing challenges posed by the recent dramatic developments in structured credit markets."
The enhanced version introduces a pricing model for bespoke synthetic tranches, with the aim of facilitating efficient hedging of CDOs. It provides intraday pricing from multiple sources - SuperDerivatives claim competitive products use previous-day consensus data which does not reflect actual tradable prices - and portfolio utilities which support name-specific default and market risk metrics.
The new version is linked to pricing engines for other asset classes, allowing users to manage the interaction between a company's credit rating and stock price and the prices of energy products and commodities that are related to its activities and which can affect its credit rating.
"The sub-prime crisis has made it clear that many investors do not have the tools for pricing and risk management of the structured credit instruments," says Sasha Rozenberg, Product Manager for Credit Derivatives, SuperDerivatives. "SuperDerivatives is stepping in to fill this gap, improving the transparency and liquidity of credit derivatives as it has done in other asset classes. We're giving credit derivatives market practitioners a one-stop-shop experience where they can access all asset classes from the same familiar, intuitive user interface - resulting in a single, powerful derivatives platform that allows a combined view of all traded asset classes, supporting hybrid structures and strategies."