Accurate P&L attribution is often viewed as a burden by trading teams and not widely used as a monitoring tool. This, obviously can lead to suboptimal trade book management and surprises.
Analytic Space is robust and versatile portfolio pricing and risk analysis framework. By amalgamating market data, pricing models and risk analysis into a centralized service, Analytic Space provides an effective analysis and understanding of book risk and T+1 projections.
Book risk analysis includes:
- A transparent understanding of the sources of book risk
- The ability to monitor potential operational issues such as exercises, rate resets, cash flows, future rolls, deal restructure and cancelation
- Effective monitoring of product lines and performance
- The ability to monitor risk capital and XVA adjustments due to traded products
T+1 projection analysis includes:
- No surprises trade book management
- A better predictor of market moves such as P&L changes compared to VaR