Codefarm, the structured credit technology company, has launched Galapagos Manager, an online service that enables managers of synthetic CDOs to protect and improve the performance of deals under management.
"With experts forecasting continuing volatility in the credit market, our release of Galapagos Manager could not be more timely," said John Mooren, Marketing Director of Codefarm. "Early pre-launch users of Galapagos Manager are finding that it is giving them a real competitive edge during the current period of market turbulence. Galapagos Manager is the ideal tool to help managers through such times. Its speed and flexibility enable frequent and rapid re-optimization of portfolios, and will completely transform portfolio management."
Using powerful optimization techniques and integrated market data feeds and models, Galapagos Manager suggests changes to portfolios that leverage the credit opinion of CDO managers by minimising risk and maximising yield.
By streamlining and automating the substitution selection, Galapagos Manager highlights opportunities that conventional analysis and intuition could miss. More deals can be managed in parallel, enabling managers to scale their business and manage growth effectively.
"Galapagos Manager will do for CDO management what Galapagos Structurer, now used by most of the major investment banks, has done for CDO structuring," explained Jeremy Mabbitt, Managing Director of Codefarm. "Our technology replaces the more limited conventional techniques with high-performance, flexible technology that enables managers to deploy their skills to full effect."
Galapagos Manager is built on the proven platform of Galapagos Structurer, the online service that uses evolutionary computing technology to structure highly optimized CDOs and enhance spreads. By integrating pricing and ratings' models and data feeds along with parameters such as SROC targets, churn limits, loss triggers and removals limits, Galapagos Manager can continuously evaluate and re-optimize deals, offering substitution suggestions that take into account a wide range of factors including price, ratings, compliance tests and trading costs.