UBS Delta, which celebrates a decade in business this September, is used by many market leading insurance companies, corporates, pension funds, asset managers, banks and hedge funds globally, enabling them to manage risk and performance across fixed income, commodities and equities, whilst currently adding coverage of structured products and European asset-back securities. UBS Delta reporting tools provide exposure, actuarial, risk, performance and statutory reporting in flexible file formats. Optimisation tools allow for LDI hedging, including a wide range of derivative overlays and cashflow modelling of individual assets.
Winning these two âCreditâ awards for Best Technology Vendor for Pricing and Analytics/Risk Management can be attributed to the combination of functionality offered by the vendor and the experience of their staff, claims Dermot Shortt, Global Head of UBS Delta.
âOn the functionality side, weâre one of the few products that provide both risk and performance analytics on the same platform, in a truly cross-asset context,â says Shortt.
âWe donât have the concept of support desks or sales representatives,â adds Shortt. âAnybody who talks to a client is an experienced fixed-income market practitioner. The resulting client coverage model is far more efficient than that of some of our competitors.â
When it comes to pricing, two things are worth noting. Firstly, users of the performance measurement model can use client-supplied pricing, rather than the default pricing supplied in the system. âThatâs important as many of UBS Deltaâs clients are benchmarked against third-party index providers. The product is price âagnosticâ in that respectâ.
Additionally, for illiquid assets where pricing data simply doesnât exist or is difficult to obtain, theoretical pricing for can be generated by âproxyingâ issuer-specific spread curves.
On the analytics/risk management side, Ian Lumb, in charge of UK and northern European client coverage for UBS Delta, says that from the very beginning, the organisation proactively took on board what clients wanted.
âWe built this product by listening to our clients. And, this is exactly how weâll continue,â says Lumb. Rebranded two-years ago, the product is not just about credit. Lumb adds: âIn terms of functionality, weâve put a great deal of effort into the LDI platform, and today we do a lot of project work for clients involved in risk management of pension and insurance funds, which tends to involve the rates business as well as pure credit.â
UBS Delta today consists of a staff of around thirty five fixed income and technology professionals. Their efforts to build up the business - formerly called CreditDelta - from just a handful of staff back in 1999 shows just how tenacity and commitment can reap rewards.
UBS Delta is an enhanced and expanded offering of the award-winning UBS CreditDelta product which was named:
-Best Proprietary Technology, Buy-Side Technology 2007
-Best Portfolio Analytics tool, Euromoney 2001-2005
-Best In-House System, Risk 2007
-No.1 Electronic platform, Euromoney Fixed Income Research poll 2007-2008