BVAL’s fixed income solution includes broad bond market coverage that spans:
- 200,000+ Government, Supranational, Agency and Corporate (GSAC) bonds
- 1,000,000 U.S. Municipal bonds
- 1,230,000 Securitized structures (ABS/MBS)
- Valuations include the BVAL score, a proprietary measure of the relative amount and consistency of market data used to generate an evaluated price
Inside Reference Data Award Recipient “Best Evaluated Prices Service Provider”: Bloomberg
Bonds issued by U.S. municipalities pose a pricing challenge because of the large number of unique instruments and the fact that many issuers are not rated, making comparisons difficult. While municipal bonds are typically priced using data from direct observations or curves drawn from observed comparables, BVAL compares a string of qualities and characteristics, including ratings, call protection and AMT eligibility, among numerous other factors. As a result of this granularity, BVAL constructs more than 60,000 pricing curves to choose from, ensuring the best fit for any municipal bond.
Government, Supranational, Agency and Corporate Bonds
The sheer range of global asset classes and bond structures in this category can be daunting. With pricing derived using Bloomberg’s systematic approach, BVAL covers a broad range of global asset classes and bond structures in more than 35 countries, including fixed- and floating-rate bonds as well as a variety of other bond structures:
- Caps and floors
Given the scope of the securitized market, the range of factors that affect pricing and the heightened regulatory scrutiny of this sector, pricing methodologies must be thorough and justifiable. BVAL employs Bloomberg’s extensive securities database to group mortgages based on fundamental characteristics, including underlying collateral, structural features and risk profile. Then, it models cash flows, gathers direct observations from many sources, and applies sophisticated algorithms and observed market data to those cash flows to calculate valuations. This methodical, logical approach enables BVAL to price each mortgage security according to its unique characteristics and behaviors, rather than through wide-ranging aggregations that lack the necessary precision and granularity.