Bloomberg expert addresses the impact of volatility and inflation on market pricing

BVWire–UKIssue #45-1
December 6, 2022

Bloomberg’s global head of evaluated pricing (BVAL), Stephanie Sparvero, a member of the IVSC’s Financial Instruments Board, offered IVSC members the following perspective on Bloomberg’s efforts to provide real-time market data for investors:

More than ever, clients need us to be on top of the market and provide high-quality pricing to inform their understanding and execution strategies. We consider that job one.

We also handle price challenges in a timely and effective way that lets us focus on the next steps in product development for our clients. We’re able to do this because two years ago, we heavily invested in our pricing challenges resolution workflow so today we can turn around pricing challenges quickly despite spikes in inquiries. We are excited when clients engage with us about their challenges because it means that we are not just another pricing provider to them, but one that is providing essential information as they navigate tough markets. All pricing providers can look similar when there is low volatility but in the volatile market we’re experiencing today, BVAL is poised to be even better.

The lack of auditable small- and medium-sized enterprise transaction comparables continues to be one of the most problematic challenges for UK business valuers. “Pricing” derived from listed company data sources requires significant subjective adjustments that can reduce the reliability of valuation conclusions.

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