Cairn Capital has selected Reoch Consulting's quasi-analytical CDO model to complement its suite of tools for pricing and risk managing correlation products.
Cairn will use Reoch Consulting's model to value and risk manage derivatives in its groundbreaking Credit Opportunities Fund.
"Credit arbitrage is an art that requires skill and the use of the most innovative tools," Tim Frost, Director at Cairn Capital, explains. "The guys at Reoch have combined their own experience with their drive for innovation to create a pricing and risk management tool that is at the leading edge in this rapidly expanding market. It allows us to get prices and all the sensitivities we need in seconds, rather than minutes."
Robert Reoch, founder of Reoch Consulting, adds: "We are proud to be able to work with the professionals at Cairn Capital. They are on the cutting edge of structured credit and pushing its borders. By working with them, we ensure we keep our finger on the pulse of this innovative market."
Background notes: A specialist asset manager and solution provider, Cairn is an independent credit markets group, providing clients with world-class advice and execution on credit structures and portfolio management under one umbrella. Established in February 2004 and based in London, Cairn combines some of the most respected and best performing individuals in structured finance and asset management -- supported by leading-edge technology.
Cairn's operating subsidiary, Cairn Financial Products Limited, is authorised and regulated by the Financial Services Authority.
Reoch Consulting is a London-based consultancy focusing on credit derivatives, asset backed securities, bonds and traditional bank credit products. The company brings together a unique executive team that includes leading experts in strategy, infrastructure, trading, systems and quantitative finance to address the current issues being faced by market practitioners.
In addition, Reoch Consulting offers a full suite of valuation models for all credit derivative products, to be used as a stand-alone tool or integrated into a broad trading and risk management platform.
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