Independent Valuation and Risk Services Limited and CDO2 Solutions Limited
London, 26 May 2006
Independent Valuation and Risk Services
Limited (“IVRS”), a subsidiary of Lombard Risk
Management plc and a market leader in providing independent
valuations of derivatives and hard to value securities for
banks and investment funds, and CDO2 Solutions Limited (“CDO2”)
whose CDOSheet® is a market-leading tool for pricing and
risk analysis for structured credit derivatives, are pleased
to announce that they have entered into a strategic alliance
under which IVRS will have exclusive access to CDOSheet®
to provide independent valuations of client positions in CDO
tranches and CDO squared structures.
IVRS is further pleased to announce that
it has appointed Dr Nicholas Stewart as Head of Structured
Credit Products. Nick Stewart, who has a quantitative analysis
background, was previously Head of Product Development at
Tamesis Limited (formerly Summit Financial Systems Limited)
and product specialist for credit derivatives for Patsystems
PLC following its acquisition of Tamesis in 2005. Prior to
this he spent three years in quantitative analysis in Deutsche
Bank, London’s Global Relative Group.
Commenting on the alliance:
Ian Hopkins, Managing Director of IVRS,
said “We are delighted to be formalising our working
relationship with CDO2, and that Nick Stewart is joining us
to accelerate our activities in this fascinating and growing
sector. Our activities to date have shown that there is a
very clear need across the market for a source of fast and
accurate valuations of these complex structures, and the valuation
models must have the flexibility to deal with the many unique
features that we encounter. Adding CDO2’s and Nick Stewart’s
skills, experience and insights into these products to our
existing capabilities will bring real added benefits to our
clients whose positions and portfolios we value.”
Gary Kendall, founder and owner of CDO2
said “We are very impressed by IVRS' approach to delivering
independent valuations for client portfolios and are delighted
to be working with them. Their market knowledge and expertise,
combined with the market data available to them, gives their
independent valuation service the same capabilities for comprehensive
pricing and risk analysis of structured credit portfolios
as any of our customers who run CDOSheet® in-house."
Contacts:
Lombard Risk Management plc
John Wisbey Chairman and CEO
020 7384 5000
john.wisbey@lombardrisk.com
IVRS
Christopher Rose CEO
020 7384 5002
christopher.rose@lombardrisk.com
Ian Hopkins MD
020 7384 5093
ian.hopkins@lombardrisk.com
CDO2
Gary Kendall
0845 4564460
gary-kendall@cdo2.com
Notes to Editors
Lombard Risk Management plc
Lombard Risk commenced trading in 1989, and is a fast growing
company focused on software and independent valuation services
for the financial industry. Lombard Risk’s software
is in the areas of valuation, risk management and regulation.
The firm’s Oberon® and Firmament® software products
allow customers to value and manage risk on a wide variety
of financial instruments with a primary focus on interest
rate, credit and foreign exchange derivative and cash markets.
Lombard Risk’s Colline® software, which is delivered
either as software or as an ASP service, is a market leader
in collateral management. Lombard Risk’s group company
STB Systems is the market leader for bank regulatory reporting
software in the UK through the STB-Reporter product.
Lombard Risk is headquartered in London, with offices including
New York, Shanghai, Hong Kong and Singapore. Lombard Risk’s
main customer base consists of banks, investment firms, asset
managers, hedge funds and fund administrators, and energy
companies. In the UK Lombard Risk does business with over
40% of the 350 banks that operate in the UK. Internationally
Lombard Risk has dealings with over 20 of the top 50 banks
in the world and many of the leading names in the hedge fund
industry.
Lombard Risk’s shares are quoted on AIM, the London
Stock Exchange’s specialist market for growth companies,
under the ticker symbol LRM.
Independent Valuation and Risk Services Limited
Independent Valuation and Risk Services Limited is a subsidiary
of Lombard Risk Management plc and is a leader in providing
independent valuations and risk measurements of OTC derivatives
and hard to value securities for banks, investment funds,
administrators, custodians and other institutions. Using a
backbone of Lombard Risk’s Firmament® and Oberon®
software and other best of breed or industry standard models
where appropriate, it provides these services on an outsourced
basis.
CDO2 Solutions Limited
CDO2 is a provider of innovative pricing and risk technology
for organisations trading structured credit products. The
company was founded on the belief that all financial organizations
should have access to the latest pricing models and enterprise
technology, irrespective of their size or trading volume.
CDOSheet® allows users to harness the power of grid computing
to price and risk manage CDO and CDO squared tranches using
simple spreadsheet functions. More information on CDO2 and
CDOSheet® can be found at http://www.cdo2.com.