DM Partners and FCS, a leading supplier of analytics to approximately 50 CLO collateral managers, have partnered to launch a Web-based analytics platform, the latest in a steady trickle of new products competing for investors' favor, as market transparency remains in high demand.
The two firms teamed up in late October, and plan to release their product in mid-to-late February. DM and FCS take a different, a more deal-centric approach to a CDO data platform, with intention to creating more transparency in the secondary CDO market. The platform currently has modeled cashflow CDO transactions across five underwriters and at least 90 collateral managers.
The product aims to eventually give comprehensive analysis of collateral manager performance and full drill-down capability to individual assets. Thus giving managers the opportunity to fully quantify cashflows, internal rates of return, and risk exposure.
"We feel investors would benefit from a user friendly and timely application to monitor collateral manager performance against the backdrop of volatile credit conditions," said a senior official at the joint venture.
In the first phase, to be completed around mid-February, the system offers easy navigation through individual CDO compliance portfolio reporting and default/recovery analysis. The second phase due to be launched in May will give full drill-down analysis of individual credits and comprehensive risk management monitoring at portfolio level.
DM Partners is a London based structured products advisory company.