Lord Abbett

Ratings Retrieval Process

About The Client

Since its founding in 1929, Lord Abbett has maintained a singular focus on the management of money. As an investment-led, investor-focused firm, Lord Abbett evaluates every decision from an investment perspective, in an effort to achieve a superior, long-term investment performance on behalf of its clients. Currently, Lord Abbett has more than $140 billion in assets under management.

Work Carried Out

Daily process to fetch, normalize, validate, and store ratings provided by many different rating agencies. This metadata driven tool allows users to easily select the connection protocol suitable for a given data provider. The supported protocols are:

  • FTP,
  • SFPT,
  • SOAP,
  • Rest (both HTTP and HTTPS),

Due to the lack of a standardized data format being shared between data providers, what was required, is a metadata-driven engine that can be easily tuned to the current needs. Among others, users can configure:

  • how to normalize data and how to recognize the not rated securities
  • different strategies for handling data updates (e.g. daily patch or monthly full universe update)
  • auditing strategies to comply with government regulations

Challenge: Normalization of ratings data across vendor API’s

To satisfy the need for wider rating coverage and more frequent updates, our team was asked to replace an existing rating component with a stand alone tool.

After initial investigation, it turned out that each rating agency exposes data via a different protocol, and in a different format. Additionally they differ in the frequency of data releases, and their handling of the data updates. Some publish full data universe on a monthly basis with daily updates, and others publish full data universe on each major update. To cover all corner cases, we familiarized ourselves with data dictionaries and API specifications provided by each agency.

The lack of a standardized API shared between the data providers required a very flexible metadata driven tool, which can be easily tuned per provider, and can ensure that all the data will be stored in a consistent way.

Our tool allows users to easily configure the connection protocol, data normalization algorithm, and the way of recognizing unrated securities. To address the inconsistencies in the data release frequency, we implemented various data update strategies (e.g. daily patch or monthly full universe update), that could be easily combined via the configuration file.

The single standalone tool let the client set up a robust ratings retrieval process that handles all the rating data in a consistent way, and audits it in order to comply with government regulations, regardless of the rating provider.

Applied Technologies

  • Java

  • Hibernate

  • Microsoft
    SQL Server

The Ratings Retrieval Process was one key element of a much larger development project carried out by Montrose Software for Lord Abbett.

As you can see in the diagram below, 2 further elements are connected to this, and you can view case studies for the other 2 steps – Reporting Process and Reporting UI. All 3 steps create a completed solution.

Data
Providers
Data

Ratings Retrieval Process

Preparation to data processing

Reporting Process

Moulding data into required format

Reporting UI

Presenting reports for the user

Have a project in mind?

Mail us to hello@montrosesoftware.com

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