A global investment bank is frustrated by paying its traditional data vendor too much for incomplete & inaccurate corporate actions data, and unresponsive support.
Here’s how DIH fixed their problem…
One of the leading investment banks in the world was unhappy with the corporate actions data they were receiving from a well-known, established data vendor. The bank needed quality events data on various government and corporate bonds, including:
- Floating-Rate Notes (FRNs)
- Permanent interest-bearing shares (PIBS)
- Treasury bills
The bank wished to track a wide variety of events, including mandatory events (the bondholder must participate), voluntary (the bondholder may choose to participate or not), and mixed events (a combination of mandatory & voluntary events). In addition to the events, the bank wanted to know about changes to the static data outlining the key terms and conditions of the bonds, and their call schedules.
Unfortunately, the bank found its existing source’s data to be missing events and having inaccurate data. When it raised these issues with its provider, its inquiries often went unanswered for days or even weeks. If the bank did get a reply, too many times it did not resolve the issue and just lead to more questions and frustration.
So DIH was called upon to provide more complete and accurate data. We delivered the data via ftp download and included over 40 pieces of information, including:
- Terms & Conditions: new issues, call/put options, redemption terms, conversion terms, etc.
- Events: redemptions, interest payments, conversions, currency redenominations, reconventions, etc.
- Changes: FRN fixings, interest rate changes, issuer name changes, agency changes, bond outstanding value changes, etc.
And while we improved the completeness & cleanliness of the bank’s data, we were also able to dramatically reduce the bank’s cost for such data.