Trading Case Study: Foreign-Owned Investment Banking Firm Licensed JWL for Whole Loan Trading Desk

Client’s Challenge

  • The client, the U.Sbased division of a major foreignowned bank, wanted to improve the profitability of its U.Sbased fixed income trading operations.  Their traders were using multiple systems and manual processes to conduct due diligence on whole loans.
  • The client was in need of integrated and efficient forwardlooking price and yield analytics tools to make more informed trading decisions. Five Bridges approached the client regarding our Javelin whole loan analytics platform, JWL.

 

Our Solution

  • The client’s trading desk staff were in need of analytics that gave them the power to assess market prices and yields for whole loans for userdefined settlement dates. JWL’s valuation tools give users the ability to define a settlement date for price/yield forecasting.
  • The client also required loan– and portfolio level valuations.  By leveraging JWL, client users had the ability to do both loanlevel and portfolio level price/yield forecasting.
  • In addition, JWL’s portfolio level analysis also gave users a tool to measure portfolio sensitivity and give the trading desk even more robust analytics to work with.

 

Outcome

  • By leveraging JWL’s forwardlooking valuation analytics at multiple levels of granularity, the client’s fixed income trading team was able to make more informed trading decisions for their whole loan portfolio.
  • This enhanced knowledge of the whole loan trading market helped create more favorable spreads for the client’s trading desk staff, and in turn improved profitability for the firm.