The use of derivatives as an element of an investment manager’s portfolio continues to rise in importance. At the same time, the ever expanding variety of these contracts and hedging activities brings increased complexity. It is vital that decision makers have certainty of information.

These increases in complexity have understandably also brought challenges to accounting properly for all positions held, and allowing for strong risk and compliance management. Do you have the confidence that the liquidity and collateral positions of any derivative contracts you have in your portfolio are correct at any point in time?

Designed to support all the accounting and reporting needs for derivative and hedging activity, the paragon Derivatives module processes swaps, caps, floors, collars and corridors:

  • Full support of payment variable rate reset and compounding schedules, including look backs and business day conventions with multiple holiday calendars to accommodate geographical market variances
  • Swap collateral management and substitutions
  • Multiple methods for notional amortization (index-based, straight-line and variable)
  • Variable strike rates on floors and caps
  • Fee income and expense management, including straight-line and level yield amortization
  • Early close out processing

As you would expect, paragon’s extensive reporting capabilities means you can select precise, up-to-the-minute data that helps managers keep on top of positions and allow for comprehensive risk and compliance reporting.

Read more about how paragon’s specialist modules have been developed to support specific trade services as fixed income service offerings, instruments and regulatory requirement have all evolved.