CMA adds ABX to QuoteVision for Home Equity/subprime evaluation

London - 14 August 2007

CMA, the credit information specialist, today announced a new release of QuoteVision, its market leading price discovery service for the OTC credit derivatives market, with the ability to handle (accurately parse and validate) the Asset Backed Securities Index (ABX) along with a other new features. This will enable credit market professionals to act immediately on the latest and best ABX prices and quickly analyse their exposure to risk.

The ABX.HE index measures the spread of credit-default swaps based on the billions of bonds secured by subprime mortgages and home-equity loans. Credit default swaps, which are contracts that allow investors to bet on a company's (or mortgage portfolio's) ability to repay debt, more than doubled in the past year to $26 trillion, according to the International Swaps and Derivatives Association. The CDS market has supplanted the bond market as the industry gauge for a borrower's credit quality

The new ABX.HE 07-2 series, which will reflect the price of home loans originated in this year's first half, is expected to reveal attempts made by subprime mortgage lenders to clean up underwriting of risky loans during that period.

QuoteVision considerably speeds up and simplifies price discovery - it enables OTC credit market professionals to view, organise, store and use in real-time the vast amounts of securities and derivatives prices they receive from their trading partners via email and messaging systems, regardless of format. Pricing information is extracted and stored in a client side database. QuoteVision improves trading performance and provides valuable information not only for the front-office team, but also risk, finance and research groups. It is rapidly becoming a key building block in clients' market data infrastructures.

Laurent Paulhac, CEO of CMA, commented ""Clients have told us that QuoteVision has transformed the way that they manage credit pricing data, both on the trading desk and in the risk and finance group. The latest version, just released, contains many enhancements in addition to ABX pricing, such as a rapid search facility, new portfolio functions, and performance enhancements. It is also optimised for CMA's recently released ASP version. The ABX facility is free to all CMA customers who are licenced for index and tranche modules".

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