Sat, Sep 5, 2015
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: New Detroit-based CTA seeks to take advantage of coming volatility[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: An emerging manager has just set up his one-man shop in the city of Detroit. Synchronicity Futures,

  2. Opalesque Exclusive: When the SEC calls, fund managers need to get out of their own way[more]

    Bailey McCann, Opalesque New York: New pressure is hitting alternative investment funds from all angles. So far this month both hedge fund and private equity players have seen enforcement actions, and subsequent fines over fees, disclosures, and misleading statements. Citi one of the biggest

  3. Fortress hedge fund manager David Dredge says markets trouble on the way[more]

    From AFR.com: David Dredge of global hedge fund Fortress has built a career studying, predicting and protecting against the world's major financial crises. The recent convulsions in global sharemarkets are "just the beginning" of a painful adjustment as money drains from the emerging market economie

  4. North America - Puerto Rico agency plans talks with hedge fund creditors[more]

    From WSJ.com: Puerto Rico’s Government Development Bank is planning to begin confidential debt-restructuring talks with hedge funds that own its bonds as early as next week, said a person familiar with the matter. The parties are set to discuss a plan under which the investors would lend additional

  5. Launches - BlackRock’s McKenna starts hedge fund with $270m, Ex-BlueBay fund managers Phillips, Fayman to launch hedge fund in 2016, Dallas lawyer, Wall Street-savvy doctor team up to form biotech-focused hedge fund[more]

    BlackRock’s McKenna starts hedge fund with $270m From Bloomberg.com: BlackRock Inc. has started an event-driven hedge fund one year after hiring Harvard Management Co.’s Mark McKenna to run the strategy. Global Event Partners, which seeks to profit from corporate events such as takeovers

 

banner