What is Fairmat Cloud?

Fairmat Cloud is an on-demand, instantaneous pricing and risk engine, which will allow you to screen structured retail products and obtain assessments on serveral types of OTCs and private placements.

See our introductory videos

In English In Italian In German

Key Features

  • Web based: nothing to install on your PC or tablet. To start just enter https://cloud.fairmat.com in your browser. Use the built-in search engine for comparing structured retail products, generate market-data driven reports like this one and design and manage structured portfolios.

  • Structured retail products database: aside on-demand risk management for OTC products, with Fairmat Cloud you can also compare and screen public structured products offering for several markets.
  • Pay-as-you-go, no setup or license fees: Access to independent valuations when you need them and pay with Skrill or Paypal. All needed relevant and timely market data has been sourced by Fairmat from leading providers.
  • No quantitative modeling skills required: we have already chosen the optimal models for pricing and analysing your OTCs.

To create and price an ‘over-the-counter’ structure just enter the relevant parameters: payment dates, thresholds, coupons, or use the provided search engine to search for mapped public products. 

You can find here a short introductory presentation.

Fairmat Cloud Update #8 - March 2016

Every day we calculate risk/return profiles for more than 9,000 structured retail products providing useful information to funds Managers, IFAs and Investors.

This is a strong commitment for our team, and we aim to include more than 20,000 products by the end of this year.

If you think that the assessment of the risk-reward profile of a single product is difficult, you certainly know that the estimation of the risk-reward profile of a structured products portfolio is cumbersome and usually only performed  empirically.

Starting from today, we added in Fairmat Cloud tools to design structured products portfolios strategies and to measure/test their added value.

We developed a quantitative framework for testing risk and performance of any structured products allocation. Testing the risk/return profile of a portfolio allocation requires the joint simulation of risk factors (which could be performed with Monte Carlo based forward looking methods or with historical based bootstrapping methods), and  the mapping of the nonlinear relationships between the risk factors and the products payout (which can be derived from term terms data). As you may notice these types of analyses require a lot of market data (underlying history, issuers credit scoring, terms information), plus robust simulation models and computational power. 

We bundled this framework into the Fairmat Cloud platform within our new portfolio designer tool which enables users to assess given structured products allocations or to generate products allocation proposals for different risk aversion levels by specifying design goals.

Our portfolio designer tool will propose efficient portfolios starting from simple input like the initial selection of products, the allocation budget, and the preferred risk measure. Every other detail is handled by the platform including market data and the access to a curated database of retail products and the possibility of autonomously entering OTC products.

A detailed “how-to” tutorial is available here.

This update to the platform also includes other features you may find interesting:

  • Support for Zenith Max products issued by Exane which, if called, pay premiums proportional to the maximum of the underlying performance  calculated from issue date to the observation date.
  • We updated our backtesting methodology and now our simulator uses bootstrapping techniques in order to provide more accurate and realistic risk measures.  Bootstrapping is the simulation technique that will be used in the forthcoming  KIDs for PRIIPS (we’ll keep you  updated soon on this topic!).
  • We reviewing and adding new features to the  Product Screening Tools.  For this reason we decided to make the actual version free to use until replacement:  to start click here.
  • Notifications for New Structured Products: In order to help you on being updated on new additions we introduced a weekly products notification email: every Monday morning we will send you an email like containing  the list of all the products we included in the database the previous week. To start being updated by next Monday just go to https://cloud.fairmat.com/Notifications.

Fairmat Cloud Update #7 - Dicember 2015

With this release, we added a couple of new features we believe you may find very useful.

Similar products:  now, at the bottom of any product page, Fairmat Cloud presents you similar products in terms of expected performances, risk, maturities and payout structure: see an example.

Ex-post performance: We are now tracking the ex-post historical performance on any expired product (example).

Notifications for New Structured Products: Our database consists now of more than 7500 products and is growing rapidly. In order to help you on being updated on new additions (for example the products you requested us to map) we introduced a weekly products notification email: in practice, every Monday morning we will send you an email containing the list of all the new ISINs we included in the database the week before subdivided by country and issuer. To start being updated by next Monday just open https://cloud.fairmat.com/Notifications.
Product Screening Improvements:  now is possible to rank and visualize products with respect to new risk and performances attributes such as Potential Total Return at Maturity, Barrier Distance and Autocall Distance

Fairmat Cloud Update #6 - October 2015

This release changes many things and if you log now into Fairmat Cloud you will notice some big changes. Along the product testing and the OTC fair value calculation, introduces two new features: a retail certificates screening system and the possibility of testing structured portfolios.

Structured Retail Products Screening and Independent Product Sheets
Currently we mapped more than 6300 structured retail products mainly on the German, UK and Italian markets and now for any mapped retail product you can freely have independent and daily-updated product sheets with several quantitative information including:

  • The product fair value;
  • The product ranking for its category;
  • The probability of over performing a domestic bond;
  • The expected return;
  • The product’s volatility and the risk to incur in losses;
  • The probability of receiving coupon or of an early termination.

If you have one minute watch the feature presentation video in English, German or Italian.

Advanced users can also benefit of our advanced screening tools which may be activated by subscribing (monthly and yearly plans available) to our Products Database Service and rank and compare all live products for a given Market with the possibility of targeting product screening by filtering underlying, issuer, strategy and maturity or customizing ranking results by including market view and risk aversion.

Structured Portfolios Analytics
We added a new private section named portfolios which you can use to map your structured products allocations. You can add retail products just specifying ISIN and number of shares or add you own OTC and test strategies with the following analyses:

  • Greeks derivatives at portfolio levels (in which expositions are aggregated under the underlying names)
  • Portfolio backtesting with expected return, volatility, return distribution, and Sharpe ratio.

There is no limit to the number of products, issuers and underlying that can be included into the portfolios and product risk-reward profiles expressed in different currencies are automatically merged in a given main currency. Runs costs are proportional to the number of products included in the given portfolio.

Fairmat Cloud Update #5 - May 2015

We added on the platform more than 900 products issued in the German market and we started to follow the issuers below:

There are also some new features:

Fairmat Cloud Update #4 - March 2015

  • A new Interactive risk-reward map has been added to the system: for all retails products mapped in the system,  we chart the expected  annualized return vs simulated semi-deviation. Users have the possibility to refine the products you are interested by optionally filtering by  maturity, currency, market  or product description. Data are updated daily and currently this is analytic is free to use. The risk-reward map is the first of a series of tool we are designing for simplifying product screening, stay tuned!
  • We improved the Independent quantitative reports  and we also support interest-rate linked products testing, and we extended customization capabilities.
  • Vector Management: we improved the it possible to copy/paste columns of date  from excel or the clipboard (for example long amortizing schedules).
  • As usual the Fairmat Cloud content has been improved with new templates: we added a reverse bonus cap template https://cloud.fairmat.com/templates/structured+products/bonus+reverse+cap and an Interest Rate Floating (optional Cap/Floor/Collar) Swap template https://cloud.fairmat.com/templates/interest+rate+products/fixed+vs+floating+interest+rate+swap

Fairmat Cloud Update #3 - January 2015

Fairmat Cloud Payout Guide
In order to be able to map even more products we continue to included new templates and  to enhance the current ones: To help you choose the right template and map it correctly we published a Fairmat Cloud Payout Guide (which will always be available on the help page).

Upcoming Event - Meeting in London
We are participating to the 12th Annual European Structured Products & Derivatives Conference 2015 and we will be in London  from  February 4th  to  February 10th. Please let us know if you are in town, we will be glad to meet you for discussing on how Fairmat Cloud could add value to your valuation processes.

Platform Updates  - Support to FX rates linked  products
Now is possible to map and assess structured products insisting on the following exchange rates:


For an example see the following Phoenix Memory Plus issue.

Content Updates

Case Study - FS First Solution LTD
FS First Solution Ltd is a London based independent advisor and early adopter of Fairmat Cloud.  FS mission is to support issuers to design and structure customised structured products to optimally match investors' needs. Their focus is on Structured Products across all asset classes: Credit, Equity, FX and Rates. FS focus is ad-hoc service and added value to clients and hence adopted Fairmat Cloud to generate unbiased and independent analyses by providing quantitative reports as a preferred step in their due diligence process.

Fairmat Cloud Update #2 - November 19, 2014

As your feedbacks arrive, we are happy to fine-tune our Fairmat Cloud service to provide you exactly what you need. We have just released the following new features:

-A new post-strike backtesting analytics which allows running of backtesting on on-going products. Differently from the standard back testing, in which the investment is tested at several dates in the past as it would be at its strike date, the post-strike backtesting accounts only for the remaining future payments. The underlying history from strike date to valuation date is used to take into account state dependency (as for example coupon accumulators or American barriers) and the convenience of the investment is compared with the current theoretical price.

-The Independent Quantitative Report can also be run on post-strike dates. The generated reporting gives you information on the risk a party assumes on entering in a structured product position at the date specified in the analysis.

We are also satisfying mapping requests by adding new products into the system. See some examples of new pre-strike and recent issues below:

In the list above we reported only few examples of what we recently mapped, now issues are also searchable by distributor name, hence to retrieve the others we suggest you to use the Fairmat Cloud search page.

Fairmat Cloud Update #1 - November 3, 2014

Fairmat Cloud is a new product hence we are rapidly adding many new features and we would like you don’t miss any one you may like. Below the changes we made in the last three weeks:

  • We added the new Absolute Return Autocall template which allow modeling of twin-win products.
  • We added the new Bonus Cap template which allow modeling of several Unicredit’s products.
  • We started some mapping experiments of the USA market.
  • We improved the Autocall template by adding the possibility of further customization: Now the final payoff can also be floating, for example proportional to the underlying level  (see for example the Accelerator Bouns Plus Plan 6 on FTSE 100 issued by Morgan Stanley).
  • We improved the Independent Quantitative Report by adding a market wide risk-return map in which the product is positioned within the risk-return plane and hence can be straightforward  compared  with the other products issued in the same currency.  Check it out the new version!
  • Finally, if you want to know more about the Fairmat Cloud infrastructure, check out the case study about us written by our market data provider Xignite.

Fairmat Cloud Update #0 - October 14, 2014

Fairmat Cloud has been released today. Please check https://cloud.fairmat.com/public/help for an introduction on its use.

Fairmat Cloud Features Screenshots