Many firms use complex, structured financial products without possessing the necessary infrastructure, both in terms of adequately trained personnel and IT-Systems, to be in a position to adequately assess the risk associated with these instruments or, indeed, to value them correctly.
Quant Edge Solutions offers a valuation service for these firms that allows them to outsource the valuation of these highly complex and often illiquid financial products to QES, thus allowing them to focus on their core competences. This service comprises the following:
A detailed analysis of the term sheets to establish all instrument characteristics that are relevant for the valuation.
- Selection of the appropriate valuation model.
- Determination and sourcing of the required market data
- Calibration of the model to the appropriate market data and subsequent valuation using either our internally developed valuation engine or other industry standard valuation tools.
- Calculation of the relevant sensitivities (Greeks).
This service is available as a "one-off"-pricing or on a daily basis. The results along with the relevant documentation of the utilized valuation model are conveyed to the client in a user-friendly reporting format.