The challenges of price-aligned analytics

Providers have attempted to solve the complexity of their models and subsequent shortcomings by using the client’s prices for the analytics, which requires the provision of prices by the client, full terms and conditions, and attempts to align yields and durations using price. Again, this is restricted by the software service provider’s prescriptive performance model.

Both approaches take the traditional changes to yield view that, even after aligning analytics, start at a very complex level – making it impossible to extend past the simplest analysis.

This approach also creates issues, including:

  • A great deal of work to arrive at aligned analytics
  • Escalating costly subscription to terms and conditions
  • Prescriptive performance model
  • Increased opportunities for error and reconciliation
  • Limited to buy and hold
  • Unable to extend to accommodate greater complexity (derivatives)
  • Limited Middle Office use.