L'AGEFI: Tuesday, May 21st 2013
Michael Heijmeijer and his Safety Margin Indicator (SMI) have been honoured by the mainstream press. The weekly magazine Paris Match has devoted an interview to him where he explains the general aim of the indicator developed by cfinancials, which enables users to detect systemic trends and the development of toxic assets – a universal monitoring tool which evaluates the risk of losing everything on a financial product. (See l’Agefi’s 5th February issue.) Expressed on a scale of 0 to 100, and available in real time, the indicator takes into account price variations, liquidity, volatility and the relative and contextual values of each product, that is not only those relative to the issuer, but also those associated with underlying securities.
I wanted an indicator that was both transparent and objective, which allows the safety of products to be evaluated without taking into account unfounded recommendations, explains Michael Heijmeijer to Paris Match. This indicator is therefore for everyone, and should enable small private investors to estimate the risk run by their investments, without drowning in a sea of information that is as abstruse as it is contradictory. Given the importance of cfinancials’ database (15 million products listed), it is not surprising that the European Parliament is interested.