Institutions have long been aware of the problems of trying to estimate the prices of certain bonds within their portfolios.

Historically,this has only caused problems at year-end when it has been necessary to evaluate investment portfolios.

The introduction of Basel II and IAS39 has significantly raised the profile of this problem and institutions are now being forced to seek more practical solutions.

If banks are to more accurately assess credit risk and potential losses and also reduce capital requirements, then any solution that addresses this issue must be workable, practical, easy to implement and sufficiently accurate that it can take into account such problems as un-priced and illiquid instruments.

We believe that in Matrix we provide such a solution.