No. of Recommendations: 0
Hello everyone, new to the boards. I am currently in the process of evaluating of what defines "materiality" on differences in prices from multiple sources on one security.

For example, if vendor A prices bond xyz at 101 and vendor B prices bond xyz at 101.25, I need to determine if that .25 differnce is "material." I have tinkered with a few different methods/formulas:

1. taking a simple mean of all the differences b/w the securities, with each security segmented by vendor liquidity score. IE, vendor scores 1, vendore scores 2, etc. I would use the average differnce as the benchmark, but that seems over simplified.

2. taking the difference of a corp bond index yield and the treasury benchmark for each security based on maturity and establishing that as some kind of metric for materiality.

Any other thoughts? This is quite an interesting but difficult task as there is not much framework for me to go on.
Print the post  


Live Video Event Monday!
The GP team is hosting a live video event on Monday at 4 p.m. ET. Don't worry if you can't make it — we'll have a replay and a transcript. Click for more!
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.