
Pricing and valuation tools are advanced software solutions that enable businesses to accurately price and value complex financial instruments and transactions such as loans or bonds. The tools utilise various factors such as interest rates, credit spreads, and default probabilities. These tools increase pricing transparency and provide more faster, more accurate valuations whilst reducing reliance on manual processes. Pricing and valuation tools are used in credit risk management to assess the fair value of financial instruments and consists of the fair value attributable to equity holders and the debt value incurred to fund the loan. These tools involve the use of mathematical models that incorporate assumptions about market conditions and future events to estimate the potential risks and returns associated with different financial instruments.