Central American Bank for Economic Integration: CVA with FINCAD



Client: CABEI




Promote economic integration and balanced economic and social development of its beneficiary member countries


  • Foster trade integration 
  • Operational risk mitigation
  • CVA coverage 



"FINCAD enabled us to deploy CVA faster than we expected and now leading the way with best practices valuation and risk modeling.

Nick Rischbieth, Executive President, CABEI



Banco Centroamericano de Integración Económica (BCIE) promotes the economic integration and development of it’s member countries. CABEI manages the largest derivative portfolio in the Central American region (over 100 trades) and regularly enters into over-the-counter swaps with all major international banks.


CABEI had developed a simple CVA solution for pricing their OTC trades but in order to achieve greater accuracy, speed, and modeling transparency they needed additional functionality. Fundamental to these changes was advanced curve-building which could quickly and accurately represent LIBOR and a variety of bases including tenor, cross-currency and bond-CDS. The ability to accurately model these bases also became an essential part of the solution.


CABEI’s migration was a two-part solution. The first step was implementing FINCAD’s flexible technology and the second was receiving expert training and consulting from FINCAD Professional Services.

FINCAD’s team of highly experienced Professional Services experts were actively involved in each step of the F3 implementation from start to finish, ensuring successful and rapid integration with existing systems and providing training, support, and consulting as needs arose. Support from FINCAD Professional Service experts was crucial for CABEI to being operational and self-sufficient with their modernized analytics framework.


FINCAD's flexibility, accuracy, speed, and transparency is enabling CABEI to run valuations on a daily basis. Result include: 

Reliability: CABEI has gained accurate and independent analytics ensuring best execution and reliability of their financial information. CABEI can now support their derivative valuation needs and satisfy their stakeholders with robust and transparent analytics based on best practices.

Improved Modeling: In addition to the operational risk reduction, CABEI has been able to customize their valuation analytics for bespoke instruments, enabling them to more accurately model their entire derivative book and enter a wider variety of trades which they previously struggled modeling.

Sophisticated Analytics: CABEI now has sophisticated analytics on par with Tier 1 banks. With FINCAD, they possess fully transparent and independent valuation capabilities which enable them to validate counterparty valuations.

Faster Valuations: CABEI's valuation run-time has been accelerated and operational risk has been mitigated by consolidating their valuation and risk work flow into a single workbook for market data, modeling assumptions, and trade portfolios.

Expert Guidance: FINCAD Professional Services provided CABEI with the tools and knowledge they required to be fully operational and continue modifying the framework to meet their needs. "The Professional Services team went out of their way to deploy what we needed and to give us the knowledge to continue modifying the system on our own," said Nick.  


“FINCAD's flexibility enables valuation and risk management of virtually any trade or portfolio, no matter how complex.”

Nick Rischbieth, Executive President, CABEI