S&P Launches R2P

Standard & Poor's Valuation and Risk Strategies division last week launched its Risk-to-Price (R2P) service for evaluating the risk-adjusted returns of corporate bonds. The new service, which the vendor began beta testing earlier this year (IMD, March 29) scores roughly 6,000 US and European corporate bonds using several criteria and then groups each issue into quartiles, with bonds in the top quartile expected to deliver the best returns once risks have been taken into account.