Valuations |
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Market Linked Debenture's Valuation  CRISIL provides independent valuation service for structured products such as Market Linked Debentures (MLDs). The service is offered for varying payoff structures with different underlying such as equity indices, commodities, basket of equity stocks and hybrids.
STRIPS Valuation CRISIL provides daily clean prices for STRIPS (Separate Trading of Registered Interest and Principal of Securities) of all Government of India bonds that are eligible for stripping / reconstitution as per Reserve Bank of India (RBI) guidelines. CRISIL's STRIPS prices are based on traded data and, for days when trades are not available, on zero rates derived using reference benchmark rates from 'CRISIL's Gilt Valuations'.
Bond ValuationThe CRISIL Bond Valuer is used by all fund houses in India. It serves the need for standardised prudential norms for the valuation of non-traded debt securities by mutual funds. The underlying pricing matrix it works on is the yield spread over gilts for respective duration and the credit rating. The matrix incorporating seven duration segments is supplied on a daily basis to help funds value illiquid corporate bonds in their portfolio. Banks, Custodians, Pension funds and a number of life insurers in India also use this service to value their fixed income portfolios.
Gilt Valuation
CRISIL has developed a Gilt valuation engine approved by the Association of Mutual Funds India, which is used by AMCs to calculate the Net Asset Value of their schemes. It generates clean prices of all outstanding Government securities on a daily basis. Besides all AMCs, this service is provided to a number of insurance companies and all major custodians operating in India.
State Development Loan (SDL) Valuations
CRISIL valuation model seeks to enable investors to appropriately value State Development Loans in the absence of significant levels of trading volumes. CRISIL valuations are based on traded data, market polls and a state wise clustering approach.
Independent Portfolio Valuation (IPV)
CRISIL provides security-wise valuations of corporate bonds to asset managers. CRISIL services in this space are driven with the objective of enabling valuations, at market realisable value, by an independent third party. Its services are targeted towards enabling asset managers in moving towards greater transparency, standardisation and industry best practices in the area of debt valuations.
Features
- Daily monitoring and verification of yields to inject more rigour into the valuation process
- Neutral view on portfolios by an independent third party
- Incorporation of corporate events and rating changes for all rating agencies into the valuation process.
- Regular interaction with Valuation Committees.
- Greater transparency to the valuation process and a step towards industry best practices.
- Helps inculcate greater investor confidence
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