Press Releases
FINCAD Empowers Buy Side with Unique MBS Solution
By Christina Oswald | November 1, 2016
FINCAD Empowers Buy Side with Unique MBS Solution

Leading Multi-Asset Valuation & Risk Analytics Integrated with MBS & Structured Fixed Income Cashflows and Models from Andrew Davidson & Co., Inc. (AD&Co) and Intex

Vancouver, BC, November 1, 2016FINCAD, the leading provider of sophisticated valuation and risk analytics for multi-asset derivatives and fixed income portfolios, today announced that its F3 solution now offers coverage for mortgage-backed securities (MBS) via integration with data analytics providers, AD&Co and Intex. Buy side firms can use F3 to accurately hedge exposure and perform scenario analysis across their entire multi-asset portfolio, including derivatives and MBS.

“To combat low interest rates and achieve higher returns, more buy side firms are adopting sophisticated investment strategies and adding new asset classes such as MBS,“ commented James Church, Vice President, Product Management and R&D, FINCAD. “Based on client requests, F3 is now the only solution that delivers accurate valuation and risk results for multi-asset derivatives and fixed income portfolios containing these complex instrument types.”

For buy side firms, FINCAD F3 is a single solution that allows firms to manage their entire derivatives and fixed income portfolios, including MBS securities. Advantages of F3 include:

  • Precise hedging: F3 helps firms perform accurate hedging across their MBS and derivatives portfolio by providing precise risk sensitivities generated from centrally managed positions, curves, data and assumptions.
  • Accurate scenario analysis: Organizations can be prepared for any potential situation with accurate scenario analysis generated from a consistent set of models and curves.
  • Consistent reporting: Portfolio managers, traders and risk managers are aligned with a consistent set of valuation and risk reports, all driven from a single set of underlying data.
  • Streamlined operations: Firms need fewer systems to manage their portfolio, reducing points of failure and requiring fewer internal resources to maintain.

Through Intex connectivity, F3 users can access cashflow waterfall information to price, analyze and manage any bonds covered by Intex, including MBS. AD&Co’s behavioral models provide F3 users a valuable tool for generating prepayment, default and loss forecasts for mortgage loans, pools and securities that are critical inputs to pricing and measuring risk.

“FINCAD’s decision to integrate their best-of-breed valuation and risk analytics solution, F3, with our MBS analytics technology means that now firms have a very powerful solution for pricing and running risk on their MBS and structured fixed income portfolios, and this will arm them with the comprehensive information they need to make informed investment decisions,” said Rob Landauer, Director of Business Development, Andrew Davidson & Co., Inc.

“We’re excited to be partnering with FINCAD in order to provide institutions with MBS and structured fixed income securities in their investment portfolios, access to a very unique offering that combines our sophisticated deal waterfall models and cashflow engine with F3’s robust valuation and risk functionality. We anticipate firms will benefit from using one solution to value and run risk on their entire derivatives book, including the very complex structured fixed income securities that Intex supports,” said Jim Wilner, VP at Intex.

About FINCAD
FINCAD is the leading provider of sophisticated valuation and risk analytics for multi-asset derivative and fixed income portfolios. FINCAD helps over 1,000 global financial institutions enhance investment returns, manage risk, reduce costs, comply with regulations, and provide confidence to investors and shareholders. Clients include leading asset managers, hedge funds, insurance companies, pensions, banks and auditors. For more information, visit www.fincad.com.

Media Contacts

Sean Mogle
Aspectus PR, New York
sean.mogle@aspectuspr.com
+1 646 202 9843

Megan Rothery
Aspectus PR, London
megan.rothery@aspectuspr.com
+44 20 7242 8867

Rob Garfield
FINCAD
r.garfield@fincad.com
+1 646 435 5920