Numerix, the leading provider of cross-asset analytics for derivatives valuations and risk management, along with CDO Software (www.cdosoftware.com), a leading provider of CDO and CLO portfolio management tools, today announced the signing of Stamford, CT, based Aladdin Capital Holdings (Aladdin). Aladdin represents the first client mutually secured through Numerix and CDO Softwareâs partnership to offer integrated âNumerix Poweredâ pricing and risk solutions within the CDO Toolsâ¢ application suite.
Users of the CDO Toolsâ¢ suite will be able to access the extensive Numerix CrossAsset library of independent pricing models and methods within a single controlled environment to price and generate risk sensitivities across the firmâs synthetic CDO instruments and portfolios. The flexibility of the Numerix CrossAsset library allows users to calculate risk analytics by specifying the copula type, correlation model and base correlations from reference deals.
Aladdin also has access to the Numerix Bloomberg Edition of Numerix CrossAsset for Excel (NBE) application. Due to the common language of Numerixâs âdeal standardâ XML file format, Aladdin can use the deal definitions and pricing inputs generated from NBE interchangeably with the Numerix powered CDO Toolsâ¢ suite, thereby fully leveraging Numerixâs advanced technology and allowing for portable and transparent CDO deal/trade management. Complete CDO trade details can easily be extracted (including models and calibration, numerical method, payoff terms and market data) and uploaded to perform advance risk and scenario analysis between both systems.
âHaving recently announced our partnership with CDO Software, we are very excited to have Aladdin onboard as our first mutual client,â said Steven R. OâHanlon, President and COO of Numerix. âThe successful integration of Numerix analytics within the CDO Toolsâ¢ application suite offers Aladdin a powerful and robust CDO pricing and risk solution. We look forward to the continued success of our partnership with CDO Software.â
âThe market for risk analytics â including credit correlation products - is very competitive. We believe that in this market, Numerix offers the best quality and flexibility in providing support to the complicated bespoke deals in which Aladdin specializes,â said Dmitry Udler, Director of Quantitative Risk Management and Research at Aladdin Capital Holdings LLC. âWrapped around the Numerix pricing engine is CDO Director, which provides us with deal booking and tracking, seamless import of market data and convenient scenario generation.â
"We have always been committed to working closely with our partners to build solutions that benefit firms in the market. By implementing a Numerix and CDO Software solution, Aladdin is now equipped with the technical infrastructure needed to make better informed investment decisions,â said Sunay Shah, CEO and co-founder of CDO Software.
The wider partnership between Numerix and CDO Software includes Numerix powered pricing and risk solutions for synthetic CDOâs, synthetic CLOâs, CDS, LCDS, bonds and loans.