Valuing Illiquid Fixed Income
The last decade has been one of the most turbulent in the history of capital markets. The fallout and subsequent recovery has seen some dramatic changes in the market environment. Most of them have been constructive, some of them less so. Having been involved in illiquid credit markets for over 20 years and having witnessed the changes in recent years, we decided to form Corvid Partners.
In 2009, as part of the illiquid credit group at Barclays Capital, we led the unwind of the $25 billion Lehman Brothers toxic asset portfolio.
Throughout that time, we saw the dramatic fall in market liquidity and the increase in regulation across all sectors. Sourcing reliable pricing, especially in illiquid assets, became increasingly difficult.
By early 2015, we were regularly being approached by market participants looking for our assistance in sourcing reliable market price data. We realised that in many cases there simply was no pricing. There was no firm willing to evaluate entire sectors of fixed income markets.
The more we looked into the problem, the more we recognised the void that had been created by the financial crisis and by the resulting legislation created to prevent another crash.
We formed Corvid Partners because we believe an independent evaluated pricing service can bring clarity and consistency to many illiquid fixed income markets. This provides asset managers, banks and investors with a clearer understanding of their investment choices.
Corvid Partners is a leading independent valuations firm specializing in illiquid fixed income securities. Our clients include investment banks, hedge funds, data firms and government agencies.
We calculate evaluated pricing on over 14,000 securities each week, accounting for more than $850 billion in issued principal. Our credit universe encompasses 70 countries, 21 currencies, 212 industry groups and over 500 different credit curves. Altogether, we collect over 200,000 data points daily. In just 3 years, Corvid has become a leading provider of illiquid fixed income data to the capital markets industry.
Our services allow our customers to manage risk and meet their regulatory reporting requirements. Our pricing gives clarity and peace of mind to investors and boards alike. All our pricing is carried out on a fully transparent basis and our team works closely with all clients on the building of our pricing models. We don’t take trading positions in assets so our pricing is unbiased and is never driven by our own portfolio.
For more information about how we price illiquid bonds and about our other services, click here.
If you would like to get in touch, call us today on + 353 1 2544733 in Europe or +1 860 577 2238 in North America.
Alternatively, email us at firstname.lastname@example.org with any queries.