Interactive Data Corp., a provider of financial market data, analytics and related solutions, says its Pricing and Reference Data business will offer Prism Valuations' valuations for loans made available by the Federal Reserve Bank of New York in connection with the Term Asset-Backed Securities Loan Facility (TALF).
Through an exclusive agreement with Prism Valuation, Interactive Data will offer valuations for TALF loans, along with other financial instruments, such as over-the-counter derivatives and structured products.
The TALF loan valuation process takes into account the value and assumptions of the underlying asset-backed securities (ABS) and commercial mortgage-backed securities (CMBS) collateral, the terms of the loan, and the value of the theoretical put option embedded in the loan.
Borrowers under the TALF program must value both the TALF-eligible securities and liabilities (i.e., TALF loans) for financial reporting purposes.
While Interactive Data already offers independent evaluations for the underlying TALF-eligible ABS and CMBS, the company's partnership with Prism Valuation now allows it to offer valuations for TALF loans, as well.
SOURCE: Interactive Data Corp.