Agreement addresses need for increased visibility into large portfolios of complex structured finance instruments for more accurate risk management and compliance
Sapient Global Markets and Standard and Poor’s Valuation and Risk Strategies (S&P VRS) have today announced a formal alliance to provide clients with in-depth valuation and analysis of structured finance securities including asset- and mortgage-backed securities (ABS/MBS), and covered bonds. The agreement will address the need for transparency and risk management for large volume portfolios, providing much needed transparency for tier one organizations in line with changing regulatory requirements.
Today’s announcement formalizes Sapient Global Markets and S&P VRS’s partnership, which includes S&P VRS becoming the first data and cash-flow engine provider for Sapient Global Markets’ recently launched Structured Finance Risk Manager (SFRM). SFRM combines software and services in a fully flexible environment to automatically value, monitor and manage the risks associated with structured assets.
“Increased regulatory scrutiny on the most complex instruments is a key concern for capital markets participants trading structured finance products such as ABS/MBS and covered bonds,” says Kevin Samborn, vice president, Sapient Global Markets. “The formalization of our partnership with S&P VRS allows us to deliver transparent, consistent and auditable valuation processes to those who have been struggling to achieve visibility into large portfolios. S&P VRS’s structured finance analytics products are a tremendous resource in the drive to increase transparency into value and risk. We’re looking forward to continuing our work together.”
Building on previous joint projects for major central banks and financial institutions, clients will benefit from Sapient Global Market’s business and technology consulting expertise and experience designing, developing and implementing large scale technology solutions. Meanwhile S&P VRS adds comprehensive data coverage and advanced modeling technologies. Together, this combination provides more in-depth visibility into asset performance, allowing clients to better monitor risk and maintain compliance.
David Pagliaro, senior director, Structured Finance Solutions, S&P VRS comments: “Sapient Global Market’s combination of capital markets experience, technology integration expertise and complex project management skills make them an ideal partner for S&P VRS and our clients. We shall continue to work together to help our clients improve their risk analysis capabilities, and capacity to manage large portfolios of complex financial instruments.”
