âThe selection of our ABSNet library by Thomson Reuters is another example of Lewtanâs commitment to increasing transparency in the structured finance market,â said Ned Myers, Chief Marketing Officer of Lewtan. âMarket transparency of prices and challenges with the mark-to-market model are on the forefront. With the structured finance community left to continue pricing most bonds on a Level 3 basis under FAS157, investors have had to interpret wide fluctuations in derivatives market prices, internal valuation models, and third-party valuations to determine the value of their portfolios. The combination of ABSNetâs data and deal models with Thomson Reuters pricing expertise will provide more credible prices when a mark-to model price is required.â
Karl Mackelburg, Global Head of Structured Finance and Derivative Pricing, said: âThe opaque nature of the worldâs structured finance markets has driven demand for robust, independent, evaluated prices. Working with Lewtan supports Thomson Reuters goal of incorporating external market expertise to provide greater coverage and accuracy, especially on difficult to value assets.â
Thomson Reuters is utilising Lewtanâs ABSNet Cashflow library to provide model support in conjunction with observable price data for the broadest European MBS coverage. Market dislocation in global ABS/MBS/CMBS bond prices has required investors to acquire additional data on both the evaluated prices themselves and underlying credit performance. Lewtan provides both deal models to form independent pricing valuations as well as underlying credit performance data on both the bonds and the collateral supporting these transactions.
Neither Lewtan Technologies nor Thomson Reuters owns, offers, sells or originates any structured finance securities, which alleviates any potential conflict of interest.