Q&A Nordic Bond Pricing

How can Nordic Bond Pricing assist?

Many professional market participants are required to price their fixed income holdings on an ongoing basis. This could for instance be for the purposes of Net Asset Value calculations, financial reports or performance and risk measuring. Many bonds are traded infrequently, and the valuation process can in situations be subject to subjective assessments and time-consuming processes.

Nordic Bond Pricing has been established as an independent provider of third-party prices and indices in order to facilitate the data processing. We specialize in obtaining and utilizing available market information in order to provide the best estimates for market prices. Nordic Bond Pricing is established on the idea that it is more efficient from a quality and cost perspective that one company carries out bond pricing rather than if each institutional investor in the market should do this.

Further, we place considerable emphasis on independence. The company's Corporate Governance structure and guidelines ensure that the price setting is carried out independently. Nordic Bond Pricing have no other roles in the market, other than creating third-party fixed income data tailored to meet clients expectations in accordance with best practice standards. Nordic Bond Pricing has also engaged an external auditor to conduct reviews of our processes and control environment in accordance with international standards.

How are the prices calculated?

The prices are calculated on the basis of data reported from all leading banks and brokerage houses combined with other observations from the market - such as traded prices. Those data are processed into our models in order to calculate prices for all bonds. Our team of dedicated analysts examine the results closely before prices are released to our clients.

How are prices and indices distributed?

As Nordic Bond Pricing have no other roles in the market than being a professional data provider, access to NBP Evaluated Pricing data and Index data is subject to a subscription fee. Clients will enter into an agreement with Nordic Bond Pricing, and fees will depend on the volumes required by the client. Technically, Nordic Bond Pricing data are distributed electronically through Nordic Trustee's Stamdata feed.