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Interactive Data to Offer Significantly Increased Coverage of Euro ABS/MBS
European ABS/MBS coverage to increase to around 3,000 tranches
19 April 2007 - London
Interactive Data Corporation (NYSE: IDC), a leading provider of financial market data, analytics and related services, today announced that its Pricing and Reference Data business has added new capabilities which will increase coverage of its evaluations for European asset-backed securities (ABS) and mortgage-backed securities (MBS) to approximately 3,000 tranches.
European securitisation has reached record issuance levels over recent years. The European Securitisation Forum reported that during 2006 issuance reached €458.9 billion, up from €327bn in 2005 and nearly triple the issuance levels of 2002. Residential mortgage-backed securities (RMBS) were reported to be the largest issuance sector representing over 50 per cent of new issuance.
Interactive Data, through its Pricing and Reference Data business, has been providing current and historical evaluations, factors and related data for European RMBS, commercial mortgage-backed securities (CMBS) and ABS for over three years. Interactive Data’s new models for providing evaluations will enhance European coverage of RMBS, as well as a whole range of other asset and mortgage-backed securities. Coverage is expected to increase to around 3,000 European investment grade tranches by the end of 2007, complementing Interactive Data's coverage of over 1,145,000 US CMO, ABS, CMBS and MBS pass-through securities, and with a client base of over 1,400 firms.
Interactive Data is using proprietary models developed specifically for European ABS and MBS securities. The development of these models was outsourced to Lab49, a consulting firm that specialises in building advanced applications for global financial institutions. These models, combined with the rigorous daily research and analysis conducted by Interactive Data’s European ABS evaluation teams, can help generate high quality daily bond evaluations.
Ian Blance, vice president, Capital Markets, Interactive Data (Europe), commented: “The ability to increase our valuation capabilities for European ABS and MBS is a welcome addition to our existing evaluations coverage of approximately 2.5 million fixed income securities globally. We have created a robust model designed to meet the growing demands of the financial services industry for evaluations of more complex European fixed income structures.”
Ross Hamilton, director of Client Engagements at Lab49 and project lead, said: “Lab49 worked closely with both business and technical teams at Interactive Data and followed an iterative development process to develop an application with the necessary performance and flexibility for the evaluation model, whilst taking into consideration reporting, control and compliance requirements.”
The additional coverage of European ABS/MBS is being made available through a range of Interactive Data’s services including its online portfolio administration service, FTS .
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Interactive Data Corporation Forward-looking and Cautionary Statements
This press release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and Federal securities laws, and is subject to the safe-harbor created by such Act and laws. Forward-looking statements include our statements discussing future financial conditions, results or projections, including statements relating to (i) the anticipated impact of the Xcitek Market Data acquisition on our business, including any impact on our earnings and cash flow, (ii) the anticipated timing of the closing, (iii) our plans to expand the services we offer to Xcitek Market Data, Interactive Data Pricing and Reference Data or Interactive Data customers, (iv) our ability to penetrate new markets for our services as a result of the acquisition and accomplish our other strategic objectives, (v) our ability to facilitate better use of our content by our customers, and (vi) our plans to combine Xcitek Market Data and Interactive Data Pricing and Reference Data’s products and services to achieve cost-savings synergies and revenue growth. These statements are subject to known and unknown risks, uncertainties, assumptions, and other factors that may cause actual results to be materially different from those contemplated by the forward-looking statements. Such factors include: the acquisition may not close on a timely basis or at all; our ability to successfully integrate the Xcitek Market Data business; and our ability to retain key employees of Xcitek Market Data. Other factors include, but are not limited to: (i) the presence of competitors with greater financial resources than ours and their strategic response to our services and products; (ii) a possible decline in activity levels in the global securities markets; (iii) new offerings by competitors or new technologies that could cause our products or services to become less competitive or obsolete; and (iv) other factors identified in our most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission. We undertake no obligation to update these forward-looking statements.
About Xcitek Market Data
Xcitek’s market data offerings include Corporate Actions, Municipal Actions, Cost Basis, Class Actions, Securities Payments, and other financial data. We serve over 2,000 institutional clients worldwide, directly and through our distributors. Our information impacts millions of investors through brokerage, trust and custody statements. Ranked #1 for more than ten consecutive years by The Summit Group, Xcitek has led all other providers in its category in such areas as data accuracy, data timeliness, coverage, and delivery reliability. User-friendly, flexible, and affordable, Xcitek’s web-based solutions deliver time-sensitive and critical information straight to the desk-top.
About Interactive Data Corporation
Interactive Data Corporation (NYSE: IDC) is a leading global provider of financial market data, analytics and related services to financial institutions, active traders and individual investors. The Company’s businesses supply time-sensitive pricing, evaluations and reference data for more than 3.5 million securities traded around the world, including hard-to-value instruments. Many of the world's best-known financial service and software companies subscribe to the Company's services in support of their trading, analysis, portfolio management and valuation activities. Through its businesses, Interactive Data Pricing and Reference Data, Interactive Data Real-Time Services, Interactive Data Fixed Income Analytics, and eSignal, the Company has approximately 2,200 employees in offices located throughout North America, Europe, Asia and Australia. The Company is headquartered in Bedford, Mass. Pearson plc (NYSE: PSO; LSE: PSON), an international media company, whose businesses include the Financial Times Group, Pearson Education, and the Penguin Group, owns approximately 62 percent of the outstanding common stock of Interactive Data Corporation.
Interactive Data Pricing and Reference Data provides global securities pricing, evaluations and reference data designed to support financial institutions’ and investment funds' pricing activities, securities operations, research and portfolio management. Interactive Data Pricing and Reference Data collects, edits, maintains and delivers data on more than 3.5 million securities, including daily evaluations for approximately 2.5 million fixed income and international equity issues. Interactive Data Pricing and Reference Data specialises in ‘hard-to-get’ information from emerging markets and evaluates many ‘hard-to value’ instruments.
Pricing, evaluations and reference data are provided in the U.S. through Interactive Data Pricing and Reference Data, Inc. and internationally through Interactive Data (Europe) Ltd. and Interactive Data (Australia) Pty Ltd.
For more information about Interactive Data Corporation and its businesses, please visit www.interactivedata.com.
Interactive Data and the Interactive Data logo are service marks of Interactive Data Corporation.
For More Information:
Investors
Andrew Kramer
Tel: +1 781-687-8306
Email: andrew.kramer@interactivedata.com
Media
Sue Mitchell (European media)
Tel: +44 (0)20 7825 8076
Email: sue.mitchell@interactivedata.com
John Coffey (US Media)
Tel: +1 781-687-8148
Email: john.coffey@interactivedata.com
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