Northern Trust has enhanced its performance attribution tools for investment managers and institutional investors by implementing daily security-level detail for fixed income within its investment risk and analytical services (IRAS) product suite.
The company claims that new ‘Successive Pricing’ model will offer a sophisticated fixed income analysis tool leveraging the company’s performance data for clients seeking to better understand the sources of return in their investment portfolios.
Go deeper with GlobalData
Access deeper industry intelligence
Experience unmatched clarity with a single platform that combines unique data, AI, and human expertise.
The model precisely accounts for performance on a variety of fixed income instruments including bank loans, swaps, options, ETDs/OTCs, repos, and futures by analyzing the relationship of a security to market factors such as interest rate and foreign exchange changes, the company said in a statement.
The Successive Pricing model analyzes the securities within a portfolio and benchmark to determine the pricing impact resulting from changes in underlying markets.
The model is also integrated with other performance and risk reporting enabling clients see absolute and relative returns along with risk metrics on their portfolios.
James Haran, senior product manager for IRAS at Northern Trust, said: "Our new daily security-level attribution model allows Northern Trust to deliver a more granular breakdown of returns generated within fixed income portfolios.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalData"While we have been able to provide fixed income attribution for many years, this model enhances our ability to highlight individual market factors such as curve, carry, yield, duration, and maturity and the resulting impact on client portfolios," Haran added.
