The Department of Finance Canada Extends its Relationship with Reval to Value Complex Bond Options

23 September 2008

Reval®, a global leader in financial risk management technology solutions and services, announced today that the Department of Finance Canada is utilizing Reval Center, Reval’s independent derivative valuations to provide option fair values for their Canada Savings Bond (CSB) and Canada Premium Bond (CPB) retail bonds.

Reval Center will continue an existing relationship with the Department of Finance Canada to provide valuation of the special redemption features of the CSB and CPB bonds. Under the previous agreement, Reval priced options over $1.9 billion of these types of bonds issued by the Department last year.

In an effort to consistently price embedded options in CSB’s and CPB’s with the Government of Canada Bonds, the Department of Finance Canada is using Reval Center to provide option prices for the structured bonds.

The options are valued under a number of methods taking into account historical redemption patterns, funding costs, and multiple future market environments.

“We are very pleased to continue working with the Government of Canada and look forward to continuing to provide our service to the Department of Finance and its many retail investors of CSBs and CPBs,” said Jiro Okochi, CEO and Co-Founder of Reval.

Become a bobsguide member to access the following

1. Unrestricted access to bobsguide
2. Send a proposal request
3. Insights delivered daily to your inbox
4. Career development