Swap Monitoring :: Technical and Analytical Resources

CDR possesses the same capabilities as any swap counterparty to price and monitor virtually any kind of derivative transaction on a real-time basis through our comprehensive trading platform. CDR was at the forefront of implementing one of the first, highly advanced monitoring systems that pre-dates most of the existing models used by other swap advisors today. CDR operates the platform in-house which eliminates the need to outsource part of our swap advisory business and keeps relationships with our clients on a personal level.

This system is powerful enough to be the central tracking system and data repository for any derivative in an issuer’s portfolio. The advanced portfolio analytics are used to monitor market conditions and provide a consistent view of market and credit risk across an entire derivative portfolio. With rapidly declining interest rates and high market volatility, many issuers have now been faced with the possibility of soon posting collateral or are already at levels that require posting. Our system allows us to monitor mark-to-market levels on a real-time basis, track and project swap payments to/from counterparties, and easily provide sensitivity matrices showing how further changes in rates could impact termination levels in the near future.

In addition to the system capabilities and reporting features, CDR has other technical resources including:

• Bloomberg & Thomson Reuters: Provides real-time market information, and pricing of various market instruments and historical data on municipal bond issues and other financial products.
• Munex: Software dedicated to running cash flows for a tax-exempt bond financing.
• Internally Created Models