Deutsche Bank has added two new functions to its DBIQ platform, its online fixed-income analytical tool, which it plans to link into its trading system next year. The goal is to permit clients to analyze potential trades vis-à-vis their current portfolios and then execute the trade online, according to Fergus Lynch, global head of index development in London. He says the link should be completed some time next year.
Lynch believes DBIQ's new addition--the DBIQ Risk System--is the first heavy-duty online risk analysis tool, because it features a so-called "Monte Carlo" simulation function, which can generate thousands of separate scenarios against which a client can analyze portfolio performance. It also can measure products with imbedded optionality, said Lynch.
Another new feature, the DBIQ Portfolio System, allows clients to analyse and track their portfolios against their chosen benchmark. The system lets users view their holdings, generate a variety of portfolio reports and perform portfolio attribution against index comparisons, said Lynch. There are plans to improve the system's portfolio attribution capabilities so clients can pinpoint the source(s) of outperformance in their portfolios.