Introduction

KYNEX provides an integrated platform to perform portfolio/risk management, individual security analytics, trade flow, order management, and profit-and-loss. Several premier institutions including investment banks, market making desks, hedge funds, and long-only investment management firms, currently benefit  from utilizing the Kynex infra-structure as an extension of their own.

Our highly customizable portfolio and risk analysis solution provides insight into the composition and distribution of a portfolio consisting of convertibles, options, corporate bonds, stocks, default swaps, asset swaps, interest rate swaps etc. along several dimensions. You can overlay your expectations for the broad financial markets onto your portfolio to identify opportunities and potential risks.  

We develop and maintain sophisticated financial calculators to support our comprehensive suite of analytics such as sensitivity, horizon, cash-flow, and scenario analysis. Our calculators currently handle all the known nuances in convertible structures, default swaps, interest rate swaps, asset swaps, equity options and we constantly upgrade them to handle new structures as they evolve in the market. You get the benefit of accurate valuation for all securities in a familiar and consistent interface regardless of the complexity of the structure.

We maintain valuation history for active convertible securities in the United States and European markets which provides insight into the dynamics of various valuation metrics in the convertible securities market, in addition to facilitating idea-generation using dynamic search criteria that combines valuation metrics and indicative terms.

With our integrated trade entry module, you can keep track of pending orders, update your inventory and P&L as trades are executed, and analyze the various components of performance over different periods in time, as well as commissions and trades by counter party. 

We periodically publish a bulletin which provides more information about functionality available on our infra-structure. We invite you to review the articles in our bulletin.

For more information please e-mail  us or call us at 201.796.4900

Portfolio/Risk Analysis

Our portfolio/risk analysis is designed to provide insight into both arbitrage portfolios and long-only portfolios.

Arbitrage Portfolios - a few highlights:

  • relevant greeks and hedges for individual securities, groups of securities, and entire portfolio
  • customizable stress test framework to capture your unique perspective of risk
  • long, short and net market values by security type and industry
  • distribution of interest rate exposure by expected life, security type, and implied spread
  • graphical representation of portfolio along various valuation attributes to identify opportunities and risks

Long-Only Portfolios - a few highlights:

  • portfolio-weighted valuation attributes such as yield, premium, investment premium, delta, etc.

  • top and bottom 

  • composition and distribution of convertibles in the portfolio along several dimensions such as sensitivity to equity markets, credit quality, market capitalization, PEGY ratios, long-term growth rates etc. with proper attribution to relative size of each security.

  • portfolio-weighted distribution comparisons to benchmarks such as the Goldman Sachs 100 or custom-defined indexes.

Our unique methodology attempts to bridge the gap between subjective factors such as macro-economic dynamics and quantitative estimation techniques available to analyze convertible securities. Our objective is to provide you with both intensive and extensive insight into the composition, distribution and convertible dynamics of your portfolios. We believe our analysis will complement your own fundamental analysis very nicely, and assist in optimizing reward/risk profiles while maintaining the investment guidelines.

Please look out for our on-line brochure with pictures expected to be published soon.

 

Equity Options

We maintain the list of active equity options in the United States and calculate the implied volatilities daily. Our options analytics currently allow you to search for available options on any stock ticker along with the overnight implied volatilities and greeks. In addition, you get a graphical representation of the volatility surface for both call and put options which can be filtered for stock-to-strike ranges and days-to-expiration ranges.

Please look out for our on-line brochure with pictures expected to be published soon.

 

Convertible Securities

We provide unparalleled insight into the composition and distribution of the United States and European Convertible Securities Market, along with powerful analytical tools both for outright and hedged investments. 

You can get a snapshot of the convertible terms, valuation, and underlying stock fundamentals in one easy to read page, simply by providing the stock ticker or  issuer name or cusip. You can even quickly re-compute the theoretical values and implied spread and volatility by changing assumptions.

You can use our powerful search tool to quickly screen convertibles based on characteristics such as yield, premium, cheapness, delta, gamma, credit quality, convertible sensitivity, etc. and many more. You can group the selection by economic sector, industry, credit quality, market capitalization, etc. and sort on any convertible attribute.

You can even perform sophisticated reward/risk horizon analysis on any convertible security. Our analytical tool starts with generic rules developed by us, and lets you tune the expected price in various scenarios. Since it is completely integrated with a valuation model and allows several tuning parameters such as relative cheapness, implied spread, implied volatility, premium, etc. you can very quickly estimate the upside potential and downside exposure, both for outright investments as well as hedged investments.

For a comprehensive list of our suite of analytics, please look at our on-line brochure expected to be published soon.

 

Default, Interest Rate, and Asset Swaps

We have developed robust calculators and analytics to value credit default swaps, interest rate swaps, and asset swaps.

Our credit default swap analytic calculates the unwind based on a quote that can be in basis points (cds spread or credit spread), upfront points, and short bond points. The default swap analytic also calculates the probabilities of default for dates in future and probability weighted expected payoffs and deal payments. In addition it calculates the business day adjusted next payment date and amount of the deal spread. 

Our interest rate swap analytic calculates one of swap premium, fixed coupon, floating spread for an interest rate swap contract. The interest rate swap analytic also calculates the future projected index values based on the forward rates and expected cash flows.

Our asset swap calculator combines our powerful convertible calculator and interest rate swap calculator to compute the value of the bond and the equity stub. Need to analyze how certain segments of the market behaved in response to events in the past? 

Please look out for our on-line brochure with pictures expected to be published soon.

 

Trading and Profit&Loss

Our trading module is tightly integrated with our portfolio and risk analysis modules. You can track P&L, place orders, look at trade histories with a mouse click from your portfolio. 

 Our trading module allows you to enter two-sided tickets which are natural for derivatives like convertibles. You can track pending orders and fill orders by automatically calculating the dollar neutral price based on the order delta. You can generate audit trail reports for any date range and completely eliminate paper tickets.

You can analyze the components of P&L such as trading, income, mark-to-market etc. for any date range and for individual securities as well as custom groups of securities. 

You can track commissions by counter party and security type for different date ranges. 

You can send the trade blotter to your custodian and administrator electronically with a touch of a button. 

Please look out for our on-line brochure with pictures expected to be published soon.

 

 

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