Numerix is introducing a new computer program to price the most common liquid, over-the-counter, municipal derivatives.
Version 2.1 of Numerix LiquidAsset adds new support of municipal derivatives and securities, including muni swaps, muni basis swaps, muni swaptions, muni swap curves and bond curves, variable rate demand obligations, and fixed rate munis.
In the 2008 financial crisis, "accurate valuations became difficult to obtain as market liquidity decreased and volatility increased, stressing the resources of both issuers and their advisors as they scrambled to understand the extent of the losses," according to Numerix.
"While the U.S. financial markets are relatively calm at the moment, many clients appreciate that the future may not be as tranquil, and they are putting better valuation and risk processes into place now so that the next crisis will not be as painful as the last," said Udi Sela, vice president of the client solutions group at Numerix.
"With LiquidAsset, advisors can be more proactive with clients and alert them to potential problems, before they become critical issues," said Numerix president Steven O'Hanlon.
Built on Numerix CrossAsset, LiquidAsset is available on the desktop through Microsoft Excel or can be integrated into proprietary or third-party systems with the Numerix LiquidAsset SDK.