QuIC Credit Valuation Adjustment Solution™ Gaining Traction in Deteriorating Credit Market, Delivers Strong ROI for Tier One Banks

Share Article

Recent deployment of QuIC's solution increases return on capital and lowers profit and loss volatility for major European bank.

I'm proud to say this client was especially appreciative of the time and energy we invested in understanding their business and specific requirements, which set up this implementation for success. From their 2007 results, the QuIC CVA Solution helped to provide a significant return for their organisation, during one of the most volatile credit market periods in the last quarter century.

QuIC Financial Technologies Inc., a leading global solutions provider of risk management, pricing and financial analytics solutions, today announced its Credit Valuation Adjustment (CVA) Solution, which enables dynamic hedging of counterparty credit exposure on an incremental deal basis, is providing significant positive results for its banking and finance clients, specifically during times of high volatility in credit markets.

"The ability to perform complex analytics with exceptional speed is a critical element to providing credit exposure management desks with unmatched power and agility in managing credit portfolios, especially in times of deteriorating credit market conditions," stated Tony Coppellotti, QuIC's Chief Technology Officer. "When global financial and banking organisations select the QuIC CVA Solution they can be confident our technology will improve their ability to measure and manage credit exposure, resulting in improved trading efficiency and ultimately, return on assets."

Over the last three quarters, the continued weakening of the global credit market has prompted international banking and finance organisations to deploy more open, flexible and faster risk measurement and management solutions. The QuIC CVA Solution is designed to meet this challenge by delivering flexible, near-real-time pricing, expected future exposure and incremental expected future exposure of large complex portfolios, covering interest rates, foreign exchange, equity, commodities and credit instruments.

The QuIC CVA Solution empowers trading and risk management professionals to simply run a full range of simulation and pricing models, capturing either market-implied or historical parameters; incorporate user defined aggregation levels, which properly assess collateral and netting agreements; and accurately calculate hedge parameters for market and credit risk factors.

Utilizing the calculation speed of the QuIC Engine™, the QuIC CVA Solution returns results in time for overnight and intra-day credit mitigation strategies, such as contingent credit trading with Contingent Credit Default Swaps (CCDS).

By calculating complex cross-asset portfolios at a fraction of the time required by competitive risk-management systems, the QuIC CVA Solution helps banking and finance organisations externalise market and credit risk and free up capital reserves, allowing far greater trading potential than comparable solutions in the marketplace.

Major European Bank Deploys QuIC CVA Solution™
QuIC's most recent deployment of the QuIC CVA Solution was with a leading European Bank, which manages the Over the Counter (OTC) derivative credit exposure risk of over 3,000 counterparties. The management of counterparty exposure for complex derivatives portfolios requires the simulation of correlated market and credit risks factors to properly price and hedge the associated risks.

Upon implementation of the QuIC CVA Solution, the bank significantly improved their return on regulatory and economic capital, achieved stronger earnings with a reduction in profit and loss volatility, increased capacity for new business, and can now focus deal origination on the most profitable business.

"Given the uniqueness of the client's needs, our team implemented a highly collaborative approach during the implementation process," added Coppellotti, "I'm proud to say this client was especially appreciative of the time and energy we invested in understanding their business and specific requirements, which set up this implementation for success. From their 2007 results, the QuIC CVA Solution helped to provide a significant return for their organisation, during one of the most volatile credit market periods in the last quarter century."

About the QuIC Credit Valuation Adjustment (CVA) Solution
The QuIC Credit Valuation Adjustment Solution performs complex analytics with exceptional speed, to provide credit exposure management desks with unmatched power and agility in managing lines of credit. It is a flexible risk management framework, designed for the specific needs of professionals involved in measuring and managing credit exposure and trading contingent credit products of all types.

About QuIC Financial Technolgies Inc.
QuIC is a global solutions provider for risk management, pricing and financial analytics. The QuIC Engine™ provides speed, flexibility and scalability for pricing and risk calculations regardless of volume or complexity. QuIC technology delivers scalable, dynamically extensible and user-customisable solutions to multiple recipients throughout the enterprise. The QuIC Product Suite™ easily integrates with in-house, partner and third-party applications & systems and operates in diverse environments, from a single laptop to large distributed grids. For more information please visit http://www.quic.com.

For more information on QuIC, please visit http://www.quic.com.

Press Contact
Julie Zuzek
Marketing and Communications Manager
QuIC Financial Technologies Inc.
Tel: +1 604 648 1107
Fax : +1 604 689 1361
julie.zuzek @ quic.com

Trademarks
QuIC, the QuIC logo, and QuIC Analytic, QuIC Analytics - XL, QuIC Analyzer, QuIC Engine, QuIC Functions, QuIC Integration, QuIC Links, QuIC Mechanics, QuIC Network Engine, QuIC Platform, QuIC Product Suite, QuIC Publisher, QuIC Script, QuIC Simulation Framework, QuIC Run, QuIC View, and QuIC Workbench product names are trademarks of QuIC Financial Technologies Inc. or a licensor in Canada, the United States and/or other countries.

###

Share article on social media or email:

View article via:

Pdf Print

Contact Author

Visit website