Codefarm integrates Reoch pricing model into its financial optimization software
27 March 2006
CDO issuers gain improved access to enhanced spreads and automation
Codefarm Software Limited has integrated Reoch Credit’s CDO pricing model into its Galapagos software platform giving clients the option of using a market-leading pricing model with new generation portfolio optimization software. By tackling the most computationally complex elements of CDO trading with proven high-performance optimization and an industry-standard model, this strategic partnership will enable more CDO issuers to benefit from enhanced spreads and automated structuring.
Codefarm’s Galapagos consistently enhances CDO spreads and saves time and resources. Its radical approach to solving highly complex numerical and combinatorial problems without the need for making simplifying assumptions can now incorporate the Reoch CDO pricing model which is being widely adopted by financial institutions.
“The increasing standardisation of pricing methodologies means that our partnership with Reoch Credit, a cutting-edge credit derivative pricing model specialist, will appeal to our existing and prospective clients,” explained Jeremy Mabbitt, Managing Director of Codefarm. “While it remains an option, it is no longer necessary for clients to integrate their own proprietary pricing model with Galapagos. CDO issuers can now improve their operational performance and benefit from enhanced spreads based on a benchmarked pricing model in a highly automated manner.”
“Codefarm’s new approach to the complex task of CDO structuring is very impressive,” commented James Wood, Managing Director of Reoch Credit. “We had no hesitation in partnering with them so that our pricing model is available alongside proven top-performing financial optimization software.”
About Codefarm Software Limited
Codefarm Software Limited is a financial optimization software specialist deploying new optimization techniques to increase returns for investment banks and financial organisations.
Applying mathematical approaches based on evolutionary computing, Codefarm provides powerful new tools for tackling highly complex combinatorial and numerical modelling problems. Its Galapagos software platform harnesses the processing power of grid computing, rapidly delivering optimal solutions and evolving them to keep pace with changing market conditions. By targetting exact requirements without simplification or compromise, Galapagos automates manual processes and consistently outperforms other methods.
With a policy of recruiting high-calibre personnel who quickly grasp the complexities of new financial markets, Codefarm can rapidly tailor its products to client needs.
Codefarm’s growing client list includes many of the top investment banks and it is now a clear leader in maximising returns on structured derivatives products.
Codefarm is a privately-owned company with headquarters in Brighton UK.
For more information see www.codefarm.com.
About Reoch Credit
Reoch Credit is a London-based consultancy specialising in credit derivatives and asset-backed securities. The company’s core offering includes provision of credit derivative analytics and quantitative advice, strategic consultancy and training courses.
Reoch Credit’s executive team brings together more than 18 years of expert experience in the credit derivatives market and includes noted industry experts in strategy, trading, systems, programming and quantitative finance to address the current issues being faced by market practitioners. Our clients include a large number of leading participants on both the buy and sell sides of the market.
For more information see www.reochcredit.com.