Standard & Poor's Associated Obligor helps you manage credit risk exposure by linking the ultimate entities responsible for paying/guaranteeing debt service to financial securities. This automated service allows users to identify the increasingly complex interrelationships across an entity, its subsidiaries and their financial instruments and obligations to help manage credit risk for fixed income holdings.
Monitoring exposure to obligors as well as issuers is necessary as a result of both regulation and internally imposed investment guidelines. With recent large credit defaults in the marketplace, portfolio managers, credit analysts and enterprise wide risk managers can manage their credit risk exposure through both the pre-trade and post-trade life cycle and in identifying the concentration of investments.
This unique service assists in identifying the increasing complex relationships across an entity, its subsidiaries and affiliates with their financial instruments and payment obligations to manage credit exposure and risk.
Features
Associated Obligor provides a reference ID that links securities to the ultimate payment obligor/guarantor using the 9-digit CUSIP number. In addition to identifying the ultimate obligor, the service identifies existing terms and conditions data for the underlying security.
Coverage includes a subset of municipal bonds including: industrial development/economic development revenue bonds, pollution control revenue bonds, high education and healthcare bonds, letter of credits, school bond programs and moral obligations.
Benefits
Associated Obligor provides a 360 degree view of the guarantor responsible for municipal debt and assists in:
Reduce enterprise-wide credit exposure and counterparty risk.
Identify your exposure to credit changes and facilitate updated risk/return models for portfolio management.
Determine who is ultimately responsible for debt service payments.
Identifies entity exposure to credit ratings for compliance purposes when evaluating the concentration of investments in a portfolio.
Comply with regulatory requirements by having a better understanding of security holdings, cross-ownerships, reporting, and compliance and risk exposure.
Re-examine an existing investment in light of an event such as a merger, acquisition, bankruptcy or rating change.
Pre-trade/post-trade decision-making.
Improve and streamline your research process.
Increase understanding of cross-market investing capabilities and exposure.
