CDO Software, a leading provider of management and reporting tools for participants in the structured credit market, has announced that its CDO Tools™ suite is now grid enabled. “With the introduction of CDO Grid™ to our CDO Tools™ product suite, you can now run agency models and analytics on multiple deals in a fraction of the time it would have previously taken” says Brett Paton, cto and co-founder of CDO Software.
Grid computing is a form of parallel computing that utilizes the processing power of network connected computers in order to solve problems that would otherwise be impossible or impractical with a single computer. Grid computing is used to solve computationally intensive calculations that can often be divided into smaller tasks.
Paton explains, “Processes can be simultaneously executed across multiple processors connected via a network to obtain much faster results. Given the current market conditions where many firms are looking to reduce costs, it’s crucial to maximize the computation power of parallel processing.”
In today’s market, portfolio managers and investors need to see the immediate impact of changes to market data or news and act decisively. Within the CDO Tools™ suite, the ability to stress portfolios and run scenarios by stressing spreads, prices, ratings and correlations amongst other factors allows you to see the immediate impact across your deals. Knowing the impact on rating agency metrics and risk sensitivities such as default risk and present value of tranches, is invaluable to keep portfolios and investments healthy. Timely data and quick analysis can help a manager to move out of a credit rapidly and avoid deterioration in the credit quality of the portfolio. Investors can also independently monitor and run market scenarios to quantify the risks to their investments.
“Previously, stressing portfolios and identifying trading opportunities to avoid deterioration or even to enhance value and credit quality, may have taken hours. Now, a client empowered with the new grid enabled CDO Tools™ suite can potentially run this in minutes,” says Sunay Shah, ceo and co-founder.
Shah states, “CDO Software is committed to giving our clients and the market leading tools which enable them to achieve their objectives. When time is scarce, costs are under pressure and information is needed immediately, we can help firms to leverage from their current infrastructure and use it to their advantage. This is our way of being proactive, supporting transparency and bringing confidence back to the market.”
CDO Software continues to provide participants in the structured credit market much needed features including integrated pricing and rating feeds, rating agency models, risk analytics models (third-party and client internal models), substitutions and investor reporting in one controlled environment. Tools have been created for CDO Managers, Investors, Trustees and Restructuring Advisors so that they can better manage their deals and eliminate the operational risks associated with spreadsheets, whilst also giving firms in the market an understanding of what the real value and risks are in these complex and so called ‘toxic’ assets. Clients can now deploy such critical tools over a grid that will enable them to respond more quickly to market volatility.
