Newsroom
> Press Releases| Back to Press Release Index |
Loan Pricing Corporation Introduces New Cross Market Comps Grid
NEW YORK, January 10, 2003 - Loan Pricing Corporation (LPC), a Reuters company, announced today the introduction of a new analytical tool known as the Cross Market Comps (CMC) Grid. The CMC Grid shows the current yield in the primary and secondary loan markets, bond market and credit default swap market for a number of investment grade corporate issuers. For the first time, the corporate credit markets have a third-party pricing benchmark that facilitates relative value analysis across the largest and most active credit markets. The new grid underscores the fact that more and more banks and investors are looking at the risk premiums in closely related markets to optimize their investment and risk management decisions.
"Our new Cross Market Comps Grid is an excellent tool for the market as it enables market participants to not only book and hold assets, but also to look at other investment options and how they could reduce large loan exposures through alternative markets" said Meredith Coffey, Senior Vice President and Director of Analytics at LPC. "Extending the reach of our BSL (Broadly Syndicated Loan) grid beyond the primary investment grade loan market allows investors, borrowers and banks alike to compare the cost of the loan relative to other markets (and evaluate the trade-offs)," she added.
LPC's CMC grid is a collaborative effort between LPC, banks supporting the CMC grid, Reuters and CreditTrade. Reuters and CreditTrade are providing the bond and credit default swap data, respectively that is necessary to calculate the yields for those two markets. Banks supporting the initiative provide indicative secondary loan market prices. LPC normalizes the data across the markets to mitigate differences attributable to fixed versus floating rate instruments and remaining term to maturity. CreditTrade is a leading transaction, data and information services provider on the credit derivative market. Reuters is the leading global provider of financial information, news and technology solutions to financial institutions, the media, businesses and individuals.
For additional information on the methodology and the details of the CMC grid, please contact LPC at lpc.info@reuters.com or log on to LoanConnector.
About Loan Pricing Corporation
Since 1985 Loan Pricing Corporation (LPC), a Reuters Company, has provided market players around the world with the most complete and accurate news, data and analytics on bank loans. LPC's coverage spans the United States, Europe, Middle East, Africa, Latin America, and Asia-Pacific via subsidiary Basis Point Publishing Limited. LPC's content is delivered via publications, on-line services and databases.
Loan Pricing Corporation (LPC) has earned its reputation as the premier global provider of loan market information and analysis through its in-depth focus on the loan industry and development of state-of-the-art products and services for bankers, borrowers, and loan investors.
For more information contact:
Loan Pricing Corporation
Meredith Coffey
Loan Pricing Corporation
Tel: (212) 833-9219
Email: mcoffey@loanpricing.com
Kevin Elphick
Loan Pricing Corporation
Tel: (212) 833-9362
Email: kelphick@loanpricing.com
| © 2005 Loan Pricing Corporation | Privacy Policy |
