RiskVal Financial Solutions, LLC, a leader in providing tools to market dealers for well over a decade, announced today that it has launched RVAL, an independent, unbiased pricing source provided to its clients through various market data avenues. Throughout the years, countless academics, quants and traders have been searching for the best way to price fixed income securities and RiskVal is ready to level the playing field.
RiskVal’s research indicates that some 20-30% of securities are mispriced, offering a great arbitrage opportunity to informed market participants. Companies are forced to reevaluate and publish over 270 Treasuries in near real-time to remain competitive in the market. In addition to the steep technological challenges with this task, there are a myriad of possible methods, models and procedures to ensure that when the market moves, those market makers are able to remain relevant.
“RiskVal has spent the last decade working with the Sell-side, perfecting how to price bonds and swaps.” said Jordan Hu, Founder and CEO of RiskVal. “Now, we are determined to use this experience to help everyone in the fixed income world make more informed decisions.”
RiskVal is able to achieve this feat through the use of various industry and in-house models. The most prized of which is our On-The-Run Spline Model, a yield curve bootstrap model which is based on a quadratic spline interpolation of forward rates to ensure the smoothness of the forward rate. Mathematically, it guarantees that the first order derivatives of forward rates are continuous. This fair value model ensures that even when the market is confused, you won’t be.
“The intent of the market is to make money, so it must be intrinsically biased,” said Nigel Snowdon, Vice President of Business Development for RiskVal. “Knowing the fair value of a security is even more important in these volatile markets, when price movements are too impulsive to trust.”
RiskVal offers a variety of products covering fixed-income, foreign exchange, and derivatives. Their product suite seamlessly integrates real-time data with powerful, high-speed analytics to provide users with a live picture of market conditions.
