SQX delivers the best existing data.
Our customers count on us to provide exemplary pricing data on even the most hard-to-price muni bonds. At SQX, we use the most accurate, up-to-date data to determine the current market value of muni bonds. But sometimes, this data can be nearly impossible to find.
At SQX, we specialize in doing the impossible.
When data isn't readily available, our team of experts will search for the best data available. We don't give up, no matter how difficult data is to find. We guarantee that our in-depth five-tier method will deliver the most accurate data in existence.
The Five-Tier Method
1st - Recent Trade
- Direct pricing uses observed prices from market participants
- Select most recent trade in the last 30 days
- Adjust for side
- Adjust for lot size (retail/institutional)
- Adjust for rate movement since the trade
2nd - Bids and Offers
- Direct pricing uses observed prices from
market participants - Select best quote (bid/offer) from the last
30 days - Adjust for side
- Adjust for lot size (retail/institutional)
- Adjust for rate movement since the quote
MBIS gathers bids and offers from a group of firms, which gives a much broader representation than simply actual trades.
3rd - Historical Spread Model
- Historical spread model uses observed prices
from market participants - Select best historical quote (trade/bid/offer)
- Adjust for side
- Adjust for lot size (retail/institutional)
- Select appropriate curve
- Adjust for rate movement since the quote
As with direct pricing, SQX uses MBIS bid/offer data beyond actual trades for historical spread pricing. Rather than defaulting to the benchmark curve, SQX selects the most appropriate curve to price each bond.
4th - Peer Pricing Model
- Peer pricing model uses similar “peer” bonds with recent market observations
- Select best available peer with market data
- Select best quote (trade/bid/offer) for selected peer
- Apply yield adjustments (as shown in the above SQX pricing methods)
- Adjust for maturity and credit differences between the bond and its peer
MBIS data provides a broad selection of peer groupings, allowing SQX to find the most precise peer data available
| ISIN | Side | Amount | SQX Price | SQX Yield | Price to Date | Total Adjustments |
|---|---|---|---|---|---|---|
| US293065TK41 | Bid | 25 | 101.211 | 3.129 | 12/1/2024 | 0.056 |
| US491196VC25 | Bid | 25 | 84.336 | 4.692 | 2/1/2024 | 0.097 |
| US167560UJ83 | Bid | 25 | 95.115 | 3.907 | 12/1/2024 | 0.007 |
| ISIN | Quote Date | Peer ISIN | Quote Type | Quote Amount | Quote Price | Peer Weight |
|---|---|---|---|---|---|---|
| US293065TK41 | 10/7/2024 | US293065TL27 | Purchase Trade | 65 | 102.012 | 0.72 |
| US491196VC25 | 10/3/2024 | US491196YR65 | Offer | 5 | 86.9 | 0.9 |
| US167560UJ83 | 10/3/2024 | US45204EYD47 | Purchase Trade | 10 | 104.121 | 0.74 |
5th - Curve Pricing
- When there is no available market data and no appropriate peer, curve pricing is applied
- The credit rating and sector are used to find the
most appropriate yield curve for the bond - The yield is obtained from the credit curve and
then adjusted for the difference between the
price specification and the curve characteristics
Rather than defaulting to the benchmark curve, SQX selects the most appropriate curve to price each bond.
| ISIN | SQX Price | SQX Yield | Price to Date | Curve Name | Use of Proceeds |
|---|---|---|---|---|---|
| US510390XE26 | 100.016 | 2.97 | 6/1/2023 | AAA | General Purpose |
| US224655MG28 | 96.934 | 3.462 | 2/1/2024 | A | Primary/Secondary Education |
| US804387PW25 | 98.304 | 3.347 | 3/1/2028 | GO AAMinus | General Purpose |
The power of the SQX muni bond pricing model:
- Accurate, independent, transparent
- Cost effective
- Customizable files
- Complete pricing on ~1 million muni bonds
- Consistent with MSRB G-30
- Customer-service focused
