The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.


All material subject to strictly enforced copyright laws. © 2022 Euromoney, a part of the Euromoney Institutional Investor PLC.
Capital Markets

ABS pricing: The battle for pricing transparency

Standard & Poor’s new evaluated pricing service joins an increasingly crowded field in the race to improve price transparency in European ABS.

Peter Jones, S&P “Is a trader marking the whole of his inventory every day?”
Peter Jones, S&P

Investors in European ABS and MBS have another evaluated pricing service to add to the array of new products on offer following Standard & Poor’s recent launch of its Securities Valuation Service. The new product is the result of a tie-up with ABSxchange, an ABS portal developed by ex-S&P European head Kurt Sampson and US-based software firm Imake Consulting. ABSxchange taps into the S&P European database to provide advanced analytics and modelling. S&P’s valuation service currently prices more than 2,300 deals in Europe and 1.1 million tranches in the US across the capital structure from triple-A to sub-investment grade. Evaluated pricing is also on offer for US securitized debt via FT Interactive. Time sensitive

In its Evaluated Prices Study (published in January this year) Standard & Poor’s describes the concept that valuations can been obtained for illiquid securities without “actual analysis by any party of the current circumstances pertaining to that credit” as an illusion. It points out that while the US markets overwhelmingly use evaluated prices for fixed income, European funds are valued using pricing data that might be “out of date and hence potentially giving rise to arbitrage opportunities that will act to the detriment of long-term investors”.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree