NSD Valuation Center is a fair value measurement service for bonds and other financial instruments.
How to measure a fair value of a bond if it is traded in the OTC market or in the event of insufficient trade volumes? How to calculate the net asset value (NAV) or prepare a 'current fair value' report for the Bank of Russia?
NSD Valuation Center measures fair values of bonds and other financial instruments for the Russian market fully automatically and in accordance with IFRS 13. The methodologies applied by NSD Valuation Center represent open models being used to calculate fair values on a daily basis for a variety of instruments:
- RUB bonds with global ratings — 750+ issues
- Mortgage-backed bonds — senior tranches of mortgage-backed bonds and single-tranche issues
- Eurobonds of the Russian Ministry of Finance — fair value measurement based on OTC market data
- Floating rate bonds — inflation-indexed OFZ bonds (OFZ-IN), floating coupon OFZ bonds (OFZ-PK), and other bonds linked to RUONIA, CPI and sovereign yield
- Corporate Eurobonds of Russian borrowers
- Ruble-denominated bonds without international ratings
- Subordinated bonds
For other tradable bonds and shares accepted for servicing by NSD, as well as the SDFI, the reference assessment according to the old methodology continues to be broadcast. Now the NSD Valuation Center is working on expanding the coverage of new techniques, as well as creating customized analytical products.
The products offered by NSD Valuation Center are available for testing and subscription at nsddata.ru, and are also distributed through Interfax and «Research of Deals» Limited Liability Company.
The Expert Board of NSD Valuation Center develops and updates fair value measurement models, taking into account the specifics of the Russian market and client experience. The Expert Board meets every quarter, with representatives of the Bank of Russia and Russian financial market professionals attending its meetings.
The Expert Board Chairperson is Ilya Aleshin, CCP NCC.
Current members of the Expert Board (appointed by the Chairperson of NSD's Executive Board on 7 March 2024) are:
- Ilya Aleshin, CCP NCC
- Dmitriy Artimenya, JSC "DOM.RF"
- Alexey Buzadalin, Interfax
- Dmitriy Kuzmenkov, Moscow Exchange
- Grigoriy Vysotskiy, JSC "NPF "FUTURE"
- Maksim Balchunas, JSC "TRANSFINGROUP" Asset Management
- Mikhail Chernov, Promsvyazbank PJSC
- Viktoriya Pomeshkina, NSD
- Vladimir Sviyazov, expert in market risk management