Covering over 5,000 investment grade tranches of US and European CLOs, the data provided by Markit’s new service will be used for price discovery, price verification, valuation and risk management.
The service leverages observable market data and models to value CLOs and customers can also access its expert team of CLO evaluators in addition to a price challenge process.
In a bid to ensure transparent valuations of CLOs, the company will also offer customers with detailed information on data inputs and the assumptions used in the evaluation process.
Markit US securitized products director and head Nathan Kirk said, "Markit’s transparent methodologies and expertise in gathering and using observable market data enables us to offer a cutting-edge approach to CLO pricing."
The new service, which will be expanded to cover mezzanine and equity tranches of CLOs, is an expansion of Markit’s evaluated pricing business for securitized products and corporate, sovereign and municipal bonds.
Having a work force of over 2,800 employees, the firm offers independent data, valuations and trade processing across all asset classes to boost transparency, reduce risk and improve operational efficiency.
