Price Transparency Affects Pricing Services

IMD FIXED INCOME SPECIAL REPORT

By J.R. Reiger, vice-president, fixed income evaluations, Standard & Poor's

The large number of bonds held by institutions and individuals compared to the relatively low number of bonds that trade on any given day has created the need for independent and objective sources of market values from pricing services. As a result, pricing services are relied upon to provide end-of-day mark-to-market fair value pricing on over 2.5 million unique bonds each business day. These prices are used for valu