Setting a Pricing Framework

• Cashflow generators and option-adjusted spread (OAS) models are employed in pricing most asset classes.
• Pricing spreads are based upon new issue and secondary market transactions.
• Securities are re-priced as we became aware of significant changes in spreads.
• Accuracy is maintained by monitoring the difference between available transacted prices and valuations on an ongoing basis so that valuations reflect current prices.
  

We insure quality by:

• Monitoring daily and weekly price change reports for securities.
• Comparing evaluated prices with actual trades to insure price accuracy and consistency.
• Monitoring stale prices on a daily basis.
• Daily monitoring of client input and output records with previous day’s activity.
• Daily monitoring of valuations coverage by client.