In the past decade, investment in OTC derivative instruments has grown dramatically. As the popularity of these instruments expanded, Interactive Data recognized the need for clients to value these instruments. This prompted the launch of the Alternative Investments Valuations Service in 2006. Since the launch, the service has expanded to include valuations and associated information on interest rate swaps, credit default swaps, and syndicated bank loans.

INTEREST RATE SWAP VALUATIONS

Interest rate swaps are a significant portion of the OTC derivatives market. The Bank for International Settlements estimated the total notional amount outstanding for interest rate derivatives to be $347 trillion as of June 2007. Despite growth in the use of these financial instruments, many firms still face operational challenges when trying to efficiently obtain access to independent valuations.

Interactive Data Pricing and Reference Data has recognized this challenge and now automates the delivery of independent valuations of interest rate swaps through its Alternative Investments Valuations service.

The interest rate swap valuation service delivers valuations based on benchmark curves assembled from industry standard sources and trade details input by customers. Interactive Data's service generates two valuations each day: based on curves at the end of the day in London (16:30 GMT) and New York (16:30 ET). You can choose which valuation you would like to receive, or select both, depending on your needs.

CDS VALUATIONS

The Bank for International Settlements estimated the total notional amount outstanding for credit default swaps around the globe to be $43.0 trillion as of June 2007. This represents growth of approximately 66 percent over the previous twelve months.

Our CDS valuation service provides a robust set of capabilities designed to meet the needs of firms that own or trade this type of derivative. The offering enables clients to review their CDS portfolio, identify which holdings they would like to value - with the option of using Markit's industry standard Reference Entity Database (Markit RED™) codes - and then easily submit a valuation request. Through an alliance with Markit, we can deliver an independent valuation based on cleansed spread curve data obtained from over 85 dealers in the CDS markets.

BANK LOAN VALUATIONS

World-wide loan volumes have increased significantly in recent years, up from $2.3 trillion in 2000 to $3.5 trillion in 2005 (Dealogic). As these volumes grow and investors enter the bank loan market, it becomes increasingly important for firms to have access to independent valuations.

Our service provides clients with seamless access to independent valuations of syndicated bank loans. The bank loan pricing service also automates the delivery of refinancing, termination and substantial amendments to loans, as well as the effective date of the change, which can help firms to efficiently keep track of these events. Loan valuations are based on data gathered by Markit from more than 65 dealers in the bank loan market, comprising approximately 6,800 loan prices daily.

ACCESS OPTIONS

The Alternative Investments Valuations service is available through an add-on to Interactive Data Pricing and Reference Data's evaluation services or as a module to its FTS online portfolio administration service.