P&L investigation.

Good Morning,

Structured product prices may vary due to one or several factors: the passage of time, changes in market conditions, or lifecycle events, etc. and that is fine until you need to investigate the reasons behind a given product P&L.

Thanks to recent developments, the existing Value Change Analysis functionality can now be customized by users to exactly fit their own P&L investigation requirements. Beautifully designed interactive reports can easily be set to uncover all product price changes. Reports can be downloaded as PDFs to share internally or with clients.

If you sometimes find yourself in such a situation i.e., trying to understand or explain the price difference of a given product between two dates, this Monthly Focus will introduce you to the right tool.

Price confuses clients

Congrats on the deal, almost there! Next step, your client submits it to his investment committee. In the meantime, market parameters fluctuate which changes the product value. The committee validated the trade, but you get back to your client with a higher price.

How would you explain the increase to a margin skeptical guy?

Well, with LexiFi’s Value Change Analysis, you get a detailed breakdown of all factors’ contribution to the change in the value of a contract between two dates. All you have to do is to send out the analysis' output.

Yes, numbers do (sometimes) speak louder than words!

Your client wants to understand the value change of a given product overnight

You get a call from a client asking about the value change of her contract overnight. You open your Value Change Analysis report, select the product and the time period, hit “Apply”: the analysis is generated instantaneously. You may download it as a PDF document and send it to your client.

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The screenshot above displays an interactive report embedding the value change analysis of an Autocall overnight. Reports can be downloaded as PDF documents.

Your client asks for a regular report explaining price changes

The value change analysis report also allows to produce regular reports that could be sent as PDF documents to answer client or internal requests.

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The screenshot above displays an interactive report embedding the value change analysis. In this example, we have selected the periods “year to date” and “from issue date”. Reports can be downloaded as PDF documents.

About the Value change Analysis

If you know LexiFi Apropos pricing tools, you should guess that price differences will carry no secret for you anymore!

  • Drill down into the price differences between two market conditions and/or two dates to explore each factor change
  • Remove the dust from your archives: the Value Change Analysis can even be used to analyze archived prices

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Many thanks!

LexiFi team