Amegy Bank N.A. has selected SunGard's Kiodex Risk Workbench to assist with commodity pricing, position keeping and risk management of its energy derivatives business.
Amegy selected Kiodex to complement its portfolio of offerings to its energy lending customers with the addition of energy derivatives.
Amegy is an example of a significant change in energy markets over the last several years: the emergence of banks as providers of energy derivatives to companies that have financial exposure to commodity prices. Bundling energy derivatives with energy lending helps put banks like Amegy in a position to increase revenues while helping to decrease the risks associated with lending in the energy sector. SunGard's Kiodex has worked with a number of banks to facilitate their expedited entry into commodity derivatives trading and to help them provide new products and services to energy companies.
SunGard's Kiodex Risk Workbench will provide Amegy with the ability to handle the attributes of commodity markets, such as the nature of market data and models that deal with the asymmetrical aspects of energy or any commodity. It will also help Amegy to measure credit risk exposures, and provide instruments that are meaningful to its customers' risk profiles.
Steve Kennedy, senior vice president and manager of energy lending at Amegy Bank, said, "SunGard's Kiodex has helped us better serve our energy lending customers. This capability will help us deepen our existing relationships.and enable us to provide a full array of financial products to this important industry."
Raj Mahajan, president of SunGard's Kiodex business unit, said, "Our goal of being a trusted partner to our customers was truly achieved with Amegy Bank. We worked with the bank to run test deals and suggest best practice credit policies and business practices around trade processing and credit exposure monitoring. As an ASP-based solution, the Kiodex Risk Workbench helps provide fast and easy implementation, low maintenance and support costs, and reliable disaster recovery."