FIXED INCOME Overview

Overview

  • Valuation of every bond and ABS/MBS issued domestically by government, local autonomous entity, special corporation and Incorporated company.
  • Valuation of foreign currency bond managed by domestic/foreign bank, securities company, insurance company, pension fund and AMC or owned by domestic/foreign company.

Practical Use of the Valuation

  • AMC (Fund), Bank (Trust Account), Insurance Company (Special Account) : Computation of NAV for accounting purposes
  • Bank, Insurance Company, Securities Company: Accounting purposes and risk managements

Excellence in Service

With years of experience, accumulated knowledge and market trusted valuation model, KAP is providing the best quality services in the market

Outstanding Valuation Model / Optimized System

  • Market tested valuation models and implication of appropriate pricing methods based on the characteristics of the bond
  • Optimized valuation system bearing years of accumulated knowledge
  • Foreign bond valuation engine covering every local convention

Coverage

  • All KTB, municipal bond, corporate bond, financial debenture, asset backed security and CD/CP issued in the domestic market
  • Foreign bond held by domestic financial institution including both globally and locally issued
  • Local currency bond including emerging market treasury bond, bond option
    (Call/Put/Makewhole), Korean Paper, China Paper and bonds issued by foreign entities (Yankee bond, Dimsum bond, Samurai bond, Arirang bond and etc)
  • Various types of bonds such as CoCo, Multi-coupon, Sinking, Pay-in-Kind, Perpetual, Inflation linked and others

Specialized Valuation Service

  • Objective and superior services by market veterans and outstanding professionals with advanced degrees
  • Methodology reports, valuation / simulation reports, market trend reports and other specialized reports
  • Customer oriented solutions, educations, seminars and in-depth researches

Additional Services

  • YTM tables by bond types and ratings
  • Corporate YTM curves
  • G-Spread, I-Spread and Z-Spread data
  • Yield curves by currency and market sector
  • Risk indicators; YTM, adjusted duration, effective duration, 100bp effective duration and convexity

Pricing Principles

Reflection of market quoted price and consistency of the valuation

  • Market quotes are treated as the top priority information
  • Internal principles to maintain consistency of the valuation

Accuracy and reasonable valuation

  • Sophisticated valuation process for accuracy and fairness of the valuation
  • Multiple valuation models and procedures when the market quotes are unavailable

Reliable and secured Data Management

  • Daily collection of the bond and market data through multiple channels in real time basis
  • Systematic verification process for the collected data
  • Construction of accurate and stable file transfer system with verification modules
  • Database separation and mirroring for BCP