This new package of capabilities is designed to assist portfolio managers and analysts at asset management firms manage relative risk and reward versus leading fixed income indices and liability benchmarks. The package can also help address the needs of investment professionals at organizations which manage their own fixed income funds internally, such as pension funds, endowments, and foundations.
For many years, asset management professionals have leveraged the robust analytical asset, portfolio and benchmark modeling tools and comprehensive security database coverage of Interactive Dataâs market-leading BondEdge service for fixed income portfolio versus benchmark risk analysis, performance attribution, and compliance testing based upon client input guidelines.
âHeightened volatility of total returns dispersion between bond sectors and quality cohorts have underscored the need for enhanced granular portfolio versus benchmark risk analysis and performance attribution tools,â said Keith Webster, managing director, Interactive Data Fixed Income Analytics. âIn addition, certain regulatory and accounting changes have heightened focus on the closer matching of portfolio and corresponding corporate pension liability risk characteristics. The analytical enhancements delivered with this latest release of BondEdge are a reflection of feedback provided by asset manager clients.â
âWe appreciate the opportunity to work closely with Interactive Data to provide our perspective for the ongoing development of fixed income portfolio analytical tools for asset managers,â said Jay E. Schwister, Senior Portfolio Manager at Baird Advisors. âBondEdge provides analysis that helps our portfolio managers and analysts manage and report on the relative risk between portfolios and their relevant index or liability benchmarks.â
BondEdge Asset Manager is available via the BondEdge Next Generation platform, which is built on the MicrosoftÂ® .NET Framework and provides a highly intuitive, flexible user interface. This newly released package of BondEdge capabilities includes enhancements to Factor-based Performance Attribution for taxable and tax-exempt portfolios and benchmarks and Liability Driven Investing analysis. Portfolio versus benchmark stress testing tools, âwhat-ifâ analytics for pre-trade simulations, and automated, flexible presentation style reports and graphics are also included.
BondEdge Next Generation includes an extensive structured finance deal library, cash-flow engine, and term structure and prepayment models, enabling clients to generate dynamic risk measures and asset cash flows for agency and non-agency residential mortgage-backed securities, including sub-prime issues, as well as asset-backed and commercial mortgage backed securities.