Sat, Oct 1, 2016
A A A
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Industry Updates

Lighthouse Partners adds Credit Value Adjustment (CVA) calculations to managed accounts

Tuesday, June 25, 2013
Opalesque Industry Update: SS&C Technologies Holdings, Inc., a global provider of financial services software and software-enabled services, today announced Lighthouse Partners has expanded its relationship with SS&C GlobeOp to include Credit Value Adjustment (CVA) calculations for the firm’s managed accounts program.

CVA is an adjustment to the value of OTC derivatives contracts that reflects the risk of counterparty defaults. The complexity of CVA calculations combined with a strong market focus on managing counterparty credit risk led Lighthouse to outsource its CVA calculations to SS&C GlobeOp. Under the terms of the agreement, SS&C GlobeOp will perform CVA calculations and report to Lighthouse on a monthly basis. The methodology applied by SS&C GlobeOp utilizes market-observable credit spreads and is consistent with ASC Topic 820, US GAAP and IFRS 13 fair value guidelines. Netting agreements and collateralization are factored into the CVA calculations.

“We consider SS&C GlobeOp to be a strategic partner to us. The addition of the CVA calculations provided by SS&C GlobeOp is an important enhancement to the production efficiencies on our managed account program,” said Robert Swan, Chief Operating Officer, Lighthouse Partners. “These services ensure the timeliness of applying a fair value to all positions in accordance with FASB accounting standards. Lighthouse is at the forefront of implementing industry leading risk mitigation initiatives.”

“CVA calculation has become an essential measurement for risk management and financial reporting, and can be a challenging process,” said Eric Reichenberg, Managing Director of Valuation Services, SS&C GlobeOp. “We enable our clients to become early adopters of industry best practices and overcome these challenges. We are pleased to extend the scope of mission-critical services we deliver to Lighthouse.”

Lighthouse Partners

Press Release

BM

What do you think?

   Use "anonymous" as my name    |   Alert me via email on new comments   |   
Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing

 



  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Opalesque Exclusive: BlackRock taps Artivest for alternative investment platform partnership[more]

    Bailey McCann, Opalesque New York: BlackRock will be working with New York-based Artivest to provide a platform for broader distribution of BlackRock alternatives funds. Artivest is a technology-driven alternative investment platform that also offers brokerage services. BlackRock has approximatel

  2. Eden Rock buys Gottex stake in ERG Asset Management[more]

    Matthias Knab, Opalesque: Eden Rock Group announced the purchase of Gottex’s stake in ERG Asset Management and so the firm is now wholly owned by Eden Rock. The two firms established the joint venture in 2011 to focus on providing cost effective solutions to funds holding illiquid investments, as

  3. "Hedge fund industry needs to shrink"[more]

    Komfie Manalo, Opalesque Asia: Writing for CNBC, Josh Brown, creator of The Reformed Broker blog and financial advisor for Ritholtz We

  4. Strategy - Voyager Management wants to invest in smaller hedge funds[more]

    From Valuewalk.com: Voyager Management, a $475 million fund of funds, is looking to downsize the hedge fund’s in which they invest, looking for smaller funds with assets under management that enable the fund to be nimble. The fund is looking for noncorrelation and will consider long / short equity

  5. Asia - Quant hedge funds are China's hot new export, Europe banks return to Korean brokerage market; target debt, alternative products[more]

    Quant hedge funds are China's hot new export From Bloomberg.com: Add China’s quant shops to the list of hedge funds branching out across Asian markets. Quantitative money managers from the world’s second-largest economy are opening offshore funds at a never-before-seen pace, according to