LOS ANGELES - Capital Management Sciences Inc. has help for portfolio managers bearish on the securities markets.
It also has help for those who need to know instantly if a planned fixed-income trade will violate client investment restrictions, said Teri Geske, vice president for product development at CMS, Los Angeles.
CMS' BondEdge for Windows soon will have the capability to make complex models for short-term instruments. The software enhancement would be helpful to portfolio managers who are bearish and who have put 10% to 30% into short-term instruments.
The new model replaces a more "simplistic" one in BondEdge, she said. It also will help portfolio managers shortening up their portfolios or those whose sole job it is to handle short-term investments, she said.
Another enhancement will link BondEdge's portfolio editor and its what-if simulation feature. If a planned trade or batch trade will overstep guidelines, BondEdge's compliance module will warn the manager immediately.
Another feature in BondEdge nearing completion is a total return optimizer. It is designed for investment managers who want to look at how to maximize a portfolio's total return on probability-weighted scenarios subject to certain constraints.
BondEdge also can help in the rapidly growing asset-backed sector of the securities market. "People are struggling with how to model homeowner behavior - to forecast the likelihood that homeowners will pre-pay or perhaps default on home equity loans under different interest rate environments," said Ms. Geske.
CMS has created a home equity loan pre-payment model. It analyzes the sensitivity of securities to changes in pre-payment rates. Clients will have the flexibility to override the CMS model based on their knowledge of the market.
The new BondEdge features are expected to be released at different times between May and the fourth quarter of this year. For further information, contact Pam Cohen of CMS at (310) 479-9715.
Bond stats on Web
BOSTON - FIRST CALL BondCall has launched a fixed-income research service over the World Wide Web.
With access on the Web, investment professionals can get fixed-income research while traveling. The new service also makes it easier for companies in remote locations that can't get Research Direct, a research service available through proprietary hardware.
Small investment firms with limited resources now have access to the service, said Faye Fardshisheh, a spokeswoman for FIRST CALL Corp., Boston.
More than 20 broker-dealers and rating agencies have signed agreements to distribute their full-text reports over the new Web service, BondCall Reports.
Contributors include Merrill Lynch & Co.; Bear Stearns Co. Inc.; Donaldson, Lufkin & Jenrette; J.P. Morgan Securities Inc.; Smith Barney; CS First Boston Corp.; Morgan Stanley & Co.; and Citicorp Securities Inc.
BondCall Reports can be accessed on the World Wide Web at http: www.firstcall.com. For further information contact FIRST*CALL's Mike Detwiler at (617) 856-2636.
PFN offers extranets
NEW YORK - PFN Inc., New York, announced it is providing technology to build global extranets, or interconnected private networks.
"Forward-thinking companies spent a lot of time and effort building corporate intranets in 1996 and now want to leverage their investment by connecting with strategic business partners beyond their (intranet) firewalls," said Ron Butman, chief executive officer of PFN.
PFN's product is called Continuum.
CHICAGO - An electronic matching system for crossing forward rate agreements is planned.
BARRA Inc., Berkeley, Calif., and Prebon Yamane Inc., Jersey City, N.J., intend to launch the first computer-based system for crossing the agreements. Called POSIT-FRA, the system will allow financial institutions to match specific sets of forward rate agreement contracts to offset interest rate reset risk, a condition that occurs daily in interest rate swap portfolios.
Prebon Yamane's "goal was to provide a high-quality, secure system to help our interest rate swap and forward rate agreements customers minimize the time and money involved in maintaining a hedge on interest rate swap portfolios," said Harry A. Fry, deputy managing director of Prebon Yamane.
POSIT enables institutions and broker/dealers to trade equities confidentially and at a low cost. POSIT is the world's largest system for electronic trade matching during the business day. It executes trades in excess of 13 million U.S. equity shares daily.
For further information, contact Jennifer DiClerico at Prebon Yamane, (201) 557-5000.
MONTREAL - The Bank of Montreal's back- and front-office processing systems have been integrated.
The bank now has the "potential for standardization of back-office processing globally and the potential for initiation of a treasury global trading platform," said Steve Priebe, senior manager, global financial products and risk management systems with the bank.
Infinity Financial Technology Inc., Mountain View, Calif., provided the systems.