Inputs that matter most
- current venue funding cost,
- how that funding cost could move over the requested tenor,
- how much backing the quote will consume,
- how concentrated your book already is in that debt asset,
- how narrow the allowed venue set is,
- whether you would still be comfortable holding the position if borrower timing becomes inconvenient.
A practical pricing discipline
Most desks need some version of the same stack:- start with expected floating carry,
- add a duration premium,
- add a capital charge for committed backing,
- add extra margin when venue choice is narrow or inventory is scarce,
- walk away entirely when the position cannot be actively managed.
The real test
A good IRIS quote is not just a number that wins the request. It is a number the solver can still defend if:- funding moves against the venue,
- the borrower waits longer than hoped to close,
- extra backing is needed before the position can be migrated or resolved.