Many investment managers are required to value their portfolio holdings as of a specific time each day. If market quotations are not readily available for bonds that trade outside of the U.S., or if U.S. markets are closed for a holiday, it may be necessary to estimate fair value. Today, this process is reactionary and time consuming. Recent significant events such as the March 2011 earthquake in Japan, the sovereign debt crisis in Europe and the Columbus Day 2011 market rally demonstrate the need for an independent, consistent and scalable approach to fair valuing bonds.

Markit Fair Value uses the statistical relationship between bond prices and other market observable data to calculate the best estimate of the bond’s price outside of active trading hours. Our pricing model considers 30 different macroeconomic, entity-specific and momentum factors.