Catlin deploys emerging market risk tool

Catlin Group has chosen Fitch’s CDS Pricing and Market Implied Ratings services to help it price its emerging market credit insurance products.

Fitch said: ‘This new pricing tool provides indicative spread values for credit default swaps where there is insufficient market information to determine a consensus price based on market maker contributions.’

John Lentaigne, Credit & Political Risk Underwriter at Catlin Bermuda, said: ‘Knowing what other markets price securities at is an increasingly important benchmark for us when pricing our own credit insurance products.’

He added: ‘[This] will give us unique coverage of emerging market entities and a vital insight into how the market is pricing risk in emerging markets.’

Thomas Aubrey, managing director at Fitch Solutions, added: ‘We are delighted to be working with Catlin Group. Assessing credit risk is central to the investment and risk management process and the combination of our CDS Pricing, CDS Benchmarking and Market Implied Ratings services provide users with a single platform to derive key insights into the direction of credit risk and ultimately make better investment decisions.’