Fitch Ratings Acquires Reoch's Credit Derivatives Analytics Business.LONDON & NEW YORK New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of -- Fitch Ratings Fitch Ratings An international rating agency for financial institutions, insurance companies, and corporate, sovereign, and municipal debt. Fitch Ratings has headquarters in New York and London and is wholly owned by FIMALAC of Paris. Ltd, a Fitch Group, Inc. company, has acquired the credit derivatives Credit Derivative Privately held negotiable bilateral contracts that allow users to manage their exposure to credit risk. Credit derivatives are financial assets like forward contracts, swaps, and options for which the price is driven by the credit risk of economic agents (private analytics business of Reoch Credit Ltd and will assume full ownership of Reoch Credit's suite of pricing and risk analytics models. Reoch Credit Managing Director James Wood James Wood can refer to:
On July 19, Fitch introduced RAP CD, a breakthrough market risk assessment service for the Synthetic CDO (Collaborative Data Objects) A programming interface from Microsoft for accessing MAPI-based e-mail, calendaring and scheduling servers. Originally called "OLE Messaging" and "Active Messaging," CDO wraps the Enhanced MAPI library into a COM object that provides the market. With RAP CD, market participants The term market participant is used in United States constitutional law to describe a U.S. State which is acting as a producer or supplier of a marketable good or service. When a state is acting in such a role, it may permissibly discriminate against non-residents. can independently quantify Quantify - A performance analysis tool from Pure Software. mark-to-model prices, key risk exposures, and the elements driving volatility, thus providing users with unprecedented transparency from origination Origination The process through which a mortgage lender creates a mortgage secured by some amount of the mortgagor's real property. Notes: Also known as loan origination, everyone must go through the origination process when securing a mortgage for a piece of real throughout the length of an investment. A number of the newly acquired models have already been integrated into RAP CD and Fitch will be incorporating the full Reoch Credit model suite in forthcoming versions of the service. "The acquisition of Reoch Credit's model suite and the arrival at Fitch of specialists like James Wood and his team further enhances Fitch's established data, analytics and research initiatives that provide the capital markets with forward-thinking and greater transparency in this burgeoning market," said Stephen Joynt, Chief Executive Officer, Fitch Ratings. "This acquisition is a testament of our commitment to broaden our Credit Derivatives risk analytic services to provide the market with insight for both credit and market risk. RAP CD provides market-proven pricing and risk functionality driven by experienced quantitative thinkers." "Fitch's new market risk platform adds a valuable dimension to its traditional strength in credit risk evaluation," added James Wood. "I am very excited by the opportunity to join Fitch at this time and look forward to leading many new and compelling initiatives." Reoch's Model Suite Reoch Credit developed its first credit derivative analytic toolkit in early 2003. Since then it has been continually updating this package to ensure that it remains at the leading edge of available credit derivative analytics. The model suite covers the full range of traded credit derivative products and has been benchmarked over the past three years. A partial list of models includes: --Credit default swaptions --Constant maturity credit default swaps Credit Default Swap A swap designed to transfer the credit exposure of fixed income products between parties. Notes: The buyer of a credit swap receives credit protection, whereas the seller of the swap guarantees the credit worthiness of the product. --Nth to default swaps --FTD options --Index swaps --Index swaptions --Semi-analytic base correlation CDO models --Skew models for CDO --Forward portfolio loss models for CDO --Non-gaussian copulas --Stochastic recovery rates --Tranche options --CDO Monte Carlo Monte Carlo (môNtā` kärlō`), town (1982 pop. 13,150), principality of Monaco, on the Mediterranean Sea and the French Riviera. models --CDO 2 models --Leveraged super senior swaps --Efficient Monte Carlo methodologies for evaluating portfolio products Fitch is not acquiring the strategic advisory, consultancy and training businesses of Reoch Credit. Terms of the transaction were not disclosed. About Fitch Ratings Fitch Ratings is a leading global rating agency committed to providing the world's credit markets with independent, timely and prospective credit opinions. Built on a foundation of organic growth and strategic acquisitions, Fitch Ratings continues to increase its market presence throughout the world and across all fixed income markets. Fitch Ratings is dual-headquartered in New York and London, operating offices and joint ventures in 50 locations and covering entities in more than 90 countries. Fitch Ratings is a majority-owned subsidiary majority-owned subsidiary A firm in which more than 50% of outstanding voting stock is owned by the parent company. of Fimalac, S.A., headquartered in Paris, France. Additional information is also available at http://www.fitchratings.com/credit_derivatives/rap_cd.cfm. About Reoch Credit Reoch Credit is a London-based consultancy specialising in credit derivatives and asset backed securities. The company's core product offerings include provision of credit derivative analytics and quantitative advice, deal analysis, strategic consultancy and training courses. Reoch Credit's executive team brings together more than 40 years of expertise in the credit derivatives market and includes industry experts in strategy, trading, structuring, systems, programming and quantitative finance to address the current issues being faced by market practitioners. Clients include a large number of leading participants on both the buy and sell sides of the market. Additional information is also available at www.reochcredit.com. Fitch's rating definitions and the terms of use Terms of Use are rules set up by the owner of an intellectual property or service to govern how they may be legally used. In many cases, terms of service are used as a contractual agreement between a company and users of a service they provide. of such ratings are available on the agency's public site, www.fitchratings.com. Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures Policies and Procedures are a set of documents that describe an organization's policies for operation and the procedures necessary to fulfill the policies. They are often initiated because of some external requirement, such as environmental compliance or other governmental are also available from the 'Code of Conduct' section of this site. |
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