Eagle Sees Increased Demand for Data Management Due to Recent Market Turmoil
Eagle Investment Systems, a subsidiary of the Bank of New York Mellon, is seeing a heightened interest in its data management solution, particularly for the ability to manage risk and provide issuer and risk exposure reporting. The main driver for this increased demand stems from recent market volatility that has left many institutional investors scrambling to quantify their true exposure to distressed investments.
“Overnight, our conversations with data management clients and prospects have evolved from supporting performance analysis and client reporting to how Eagle can also help with managing risk and reporting issuer and other risk exposures,” said John Lehner, president of Eagle. “Eagle’s data management solution was designed to allow clients to drill deep into portfolios and provide a timely and complete assessment of absolute and benchmark-relative exposures to issuers, industries, currencies and other factors. We have success stories of clients that were able to determine exposure across all asset classes in a matter of minutes once the news broke about firms such as Bear Stearns and Lehman.”
Eagle’s data management solution helps firms create and maintain an enterprise data standard to ensure quality and consistency through a centralized data hub. Unlike other offerings, Eagle provides bi-directional views of a firm’s data and allows them to look across all portfolios, properly reflect swaps and other derivatives, and look through fund-of-funds and multi-legged securities. For all securities, Eagle provides the ability to report a full history over time.
A recent survey conducted by Dayle Scher, research director at TowerGroup confirmed that financial services firms place a high importance on acquiring and storing entity data because of the impact on credit analysis, application integration, and compliance with “know your customer” regulations. Ms. Scher said, “The high importance attributed to the impact of entity data is hardly surprising in the post sub-prime environment as, now more than ever, financial services institutions need quick access to their counterparty and issuer exposure.”
In today’s fast and volatile market, firms can not afford delays in quantifying and reporting their exposure to complex investments. Eagle’s data management offering helps managers understand their portfolio exposure within minutes, eliminating any uncertainty and allowing firms to concentrate on reporting back to clients and internal audiences.