Standard & Poor’s and CSV provide solution for complex security market pricing needs

New alliance addresses demand for independent pricing of illiquid and complex instruments

LONDON, April 11, 2006 – Standard & Poor’s, the leading provider of independent research, ratings, indices and fixed-income evaluations, today announced an exclusive alliance with Complex Security Valuations Inc. (CSV) to extend the firms’ market-leading capabilities pricing illiquid securities and hard-to-value structures. To help meet clients’ increasingly complex valuation needs, Standard & Poor’s and CSV now offer the industry’s most comprehensive and sophisticated independent pricing services and client support, including direct access to valuations specialists. This alliance enables Standard & Poor’s to deliver more expansive valuations support to buyside and sellside firms that hold or trade these instruments, both in the US and globally in all currencies.

“With this alliance, clients can access end-to-end global valuation services supported by a technologically sophisticated model-based pricing process,” says J.R. Rieger, Vice President, Global Evaluations of Standard & Poor’s. “Following Standard & Poor’s previously announced expanded valuations services, clients can now harness our combined industry-leading capabilities to meet increased internal and external demand for consistently superior independent pricing services and support.”

Leveraging the industry’s largest collection of technology-driven modeling tools for illiquid securities and complex structures, CSV’s valuation process incorporates market research, academic papers and industry practitioner journals to reverse-engineer primary market supplied pricing within its sophisticated validation process. CSV will offer audit trails of the assumptions and theoretical underpinnings of its models to equip clients with defensible, documented and expertly derived pricing methodologies.

“CSV’s culture of independence, integrity and customer service combined with Standard & Poor’s capabilities results in a powerful solution to meet clients’ changing needs,” explains William W. Martin, CSV’s Chief Operating Officer. “Customers will benefit from high coverage levels on valuations delivered in existing and easy-to-use formats for these increasingly complex instruments.”

Already a market leader in pricing hard-to-price securities, Standard & Poor’s has provided independent multi-asset class evaluations for more than 35 years. With extended coverage of high yield bonds and complex structured products, including such illiquid securities as CDs, interest rate swaps, credit default swaps, CDOs, CLOs and European structured finance bonds, Standard & Poor’s supports customers’ diverse pricing and evaluation needs. CSV is the only independent valuations provider that employs a patent-pending research-intensive and model-driven process to deconstruct primary market prices and arrive at highly informed independent evaluations for this rapidly growing segment of the global financial markets.

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