Fermat Capital Management, LLC, Chooses AIR's Catastrophe Modeling Systems for Catastrophe Bond Risk Management.BOSTON -- AIR Worldwide Corporation (AIR) today announced that hedge fund hedge fund, in finance, a highly speculative, largely unregulated investment device. Originating in the 1950s, the funds "hedge" by offsetting "short" positions (borrowing a security and then selling it at a higher price before repaying the lender) against "long" manager Fermat Capital Management, LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control (Fermat), has chosen AIR's catastrophe risk management systems to complement its catastrophe bond catastrophe bond A debt security with a payoff tied to the relative severity of a natural disaster such as a hurricane or earthquake. Bondholders are paid with insurance premiums but may have to accept reduced principal repayment in the event the specified investment portfolio management. Fermat, one of the largest investors in catastrophe bonds, has licensed CATRADER[R], AIR's catastrophe risk modeling application, and ALERT(TM), AIR's online real-time loss estimation service. "The AIR catastrophe models that underlie the software enable us to generate loss estimates for a wide range of our potential investments," said Nelson Seo at Fermat Capital Management. "Results from these simulations will help us better manage our overall portfolio risk and to assess the likely return on specific catastrophe-related instruments." "CATRADER is the system of choice for financial institutions investing in insurance-linked securities," said Will Skinner Will Skinner may be:
ALERT, in conjunction with CATRADER, will help Fermat determine the risk to their portfolio in real time from actual events unfolding. As the market for catastrophe bonds has matured, AIR's ALERT has become a key support tool for companies trading these instruments in the secondary market. "Fermat is yet another example of the innovative uses being made of AIR's risk management solutions to better manage the risk associated with catastrophe-related financial instruments," said Mr. Skinner. AIR has provided modeling support tailored to the needs of the catastrophe bond securitization Securitization The process of creating a financial instrument by combining other financial assets and then marketing them to investors. Notes: Mortgage backed securities are a perfect example of securitization. May also be spelled as "securitisation. market since 1997, both on a consultation basis and through CATRADER. About AIR Worldwide Corporation AIR Worldwide Corporation (AIR) is a leading risk modeling company helping clients manage the financial impact of catastrophes and weather. Utilizing the latest science and technology, AIR models natural catastrophes in more than 40 countries and the risk from terrorism in the United States A common definition of terrorism is the systematic use or threatened use of violence to intimidate a population or government and thereby effect political, religious, or ideological change. . Other areas of expertise include site-specific seismic engineering analysis, catastrophe bonds, and property replacement cost valuation. An ISO (1) See ISO speed. (2) (International Organization for Standardization, Geneva, Switzerland, www.iso.ch) An organization that sets international standards, founded in 1946. The U.S. member body is ANSI. business, AIR was founded in 1987 to provide its insurance, reinsurance The contract made between an insurance company and a third party to protect the insurance company from losses. The contract provides for the third party to pay for the loss sustained by the insurance company when the company makes a payment on the original contract. , corporate, and government clients a complete line of risk modeling software and consulting services that produce consistent and reliable results. Headquartered in Boston, AIR has additional offices in North America, Europe, and Asia. For more information, please visit www.air-worldwide.com. About Fermat Capital Management LLC Fermat Capital Management, LLC is an investment management company specializing in Insurance-Linked Securities. Fermat was founded in 2001 by Dr. John Seo and Nelson Seo and is based in Westport, Connecticut. |
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