Principia Partners, a leading solution provider for derivative and structured finance operations, today announced that OIS discounting impact assessments are now available through its derivatives valuation service, pasVal.
As more organizations attempt to integrate OIS discounting, misunderstandings of the materiality of its impact are commonplace. By providing a straightforward and reliable means to make such assessments, the pasVal service helps organizations to avoid the less-obvious pitfalls, understand the trickier aspects of OIS discounting, and enjoy a smoother transition to this new market standard. Because pasVal is powered by Principia, the service includes sophisticated pricing capabilities that capture the kind of impacts that would otherwise come as a surprise.
Getting the assessment through pasVal is a simple matter of uploading a derivatives portfolio and reviewing the results which highlight the material impacts on yield curves, cash flow projections, valuations as well as new risks and sensitivities that have been introduced by the change. This makes it possible for organizations, and their auditors, to gain an independent validation of how well their derivative trading, risk or accounting systems manage the wide-ranging and nuanced impact of OIS discounting.
“It’s wonderful to be able to make our OIS discounting expertise available to the broader market like this,” stated Douglas Long, Principia’s EVP of Product Strategy. “By being closely involved in a number of OIS discounting transitions, we know the kinds of oversights that most people make. With an online service like pasVal, now we can help even more organizations get past the complexity quickly.”
Receiving the OIS impact assessment package is available as a simple one-time service or as part of a subscription to other pasVal services.