Entity Debt Monitoring
FactEntry has developed TED (Tracking Entity Debt) data models which collate and aggregate the debt issued by corporates, sovereigns and agencies
The FASB Board affirmed its February 24, 2010 decision that an entity would disclose significant changes in the fair value of a
financial liability arising from changes in the entity's own credit standing (excluding changes in the price of credit).
Who uses TED?
Credit risk managers are looking for new avenues to capture, measure risk and fair value of the debt assets. TED assists in
providing a clear picture of an entity’s outstanding liabilities for
- Market Data
- Risk Management
- Trading Desk
- Fixed Income Research
- Structured Finance
- Liability Management
The TED data is a critical piece of information useful in identifying the risk for any debt issuing entity. TED data enables clients to determine -
- Issue or Issuer liquidity
- Credit Risk along the curve
- Total number of bonds issued or outstanding
- Developing a map for issuers with similar sector, rating, amount outstanding for granular issuer curves
- Comparative analysis for issuers with similar debt levels
- Draw comparison in changes with debt during a period of time.
- Build a relational map to CDS for various tiers of Debt and outstanding debt at a given maturity
- Pinpoint the principal repayment risk at any maturity point for an issuer
- Calibrating the curves for maturity points where the issuance is larger compared to other maturity points on the curve
- Group multiple debt issues with similar maturity bands for effective credit risk modelling