JPMorgan has launched Credit Navigator, an analytical tool designed to identify relative value opportunities in the credit markets.
JPMorgan says Credit Navigator was created in response to the increasing integration of the credit markets, with market makers and investors aggregating the trading of all formats of credit risk into a single risk management system.
The tool, which is for users of JPMorgan's Orbit Web pages, provides comprehensive data for over 50 European and US names, enabling users to identify relative value opportunities in credit.
Credit Navigator offers an asset universe and basis history chart for each name, comprising the credit default swap (CDS) curve, true asset swap spreads for all liquid bonds and a three month basis history of these bonds. The complete six-month basis history of each bond is also displayed.
The data enables users to judge both the absolute and relative value of a bond versus other bonds as well as versus CDS. Additional features include debt/equity history, CDS curve and curve slope history and an implied CDS forward matrix.
Marcus Schüler, co-head of JPMorgan's flow credit derivative marketing business in Europe, says: "Credit Navigator is an important step towards increasing transparency in the credit derivative and corporate bond markets, and a crucial tool for identifying relative value and basis trading opportunities."