Case Study: Toyota Financial Services achieves greater portfolio transparency and OIS-ready daily valuation with Numerix

Toyota Financial Services - Customer Case Study

Toyota Financial Services (TFS), the U.S. financing arm of Toyota, needed greater control and transparency over a large derivatives and bonds portfolio, including complex structured products. It also wanted to move to daily valuation on a single platform and prepare for new FASB rules requiring OIS-based discounting, while gaining more flexibility to structure products and reduce borrowing costs. Numerix was selected to help address these needs.

Numerix implemented an advanced analytics application with OIS-based valuation, broad instrument coverage, and flexible pay-off scripting to handle TFS’s entire portfolio. It also integrated position and market data loaders to automate daily updates and valuations, improving transparency, efficiency, and accuracy. As a result, Toyota Financial Services became ready for OIS-based portfolio valuation and received the 2014 Adam Smith Award for “Best Risk Management,” with Numerix helping enhance funding options and support faster, more competitive product structuring.

Toyota Financial Services

Jonathan Cowan

CFA; National Manager, Rate Desk & Derivatives