Markit has acquired New York-based analytics firm Chasen Enterprises as part of an effort to strengthen its structured finance division.Chasen specialises in modelling collateralised mortgage obligations (CMO) and asset-backed securities (ABS). “In the synthetic products space, we decided that we need to own and control critical parts of infrastructure. It is a company that has an excellent reputation and gives representation on how deals payout in the future,” said Ben Logan, a New York-based director in ABS division of the London-based pricing, valuation and data provider.
According to Logan, Chasen’s expertise will be instrumental in Markit’s pricing of future cash flows from credit default swaps (CDS) on ABS. The firm plans to launch a central monitoring and settlement platform for CDS of ABS called Reference Cashflow Database within two months.
The platform will, Markit claims, help standardise the process of identifying and calculating the effects of events, such as interest rate shortfalls or writedowns, and their settlement procedures.
Markit also plans to hire about 30 more people specialising in ABS by the end of 2007.
More on Infrastructure
US regulatory concerns about liquidity of government securities collateral could be resolved by access to the Fed’s discount window, CCP officials say
High-frequency traders have been viewed with suspicion for some time. Now critics claim exchanges are conspiring with the traders to develop tools that benefit them and disadvantage ordinary investo...
The benefits of local trade repositories outweigh the possible disadvantages of multiple reporting requirements, says executive director of HKMA’s financial infrastructure unit
Sign up for Risk.net email alerts
Nominated for two technology awards
Nominated for post trade technology award
Sponsored webinar: Collateral and counterparty tracking
Isda directors warn on fragmentation, access and liquidity - but expect problems to pass
There are no comments submitted yet. Do you have an interesting opinion? Then be the first to post a comment.