SOURCE: Kamakura Corporation

August 15, 2005 10:00 ET

Kamakura Integrates Markit Credit Default Swap Pricing for Kamakura Default Probability and Correlation Service

HONOLULU, HI -- (MARKET WIRE) -- August 15, 2005 -- Kamakura Corporation and Markit Group Limited ("Markit") announced today that Kamakura has integrated Markit's credit default swap pricing database. Joint customers of Kamakura and Markit will be able to use it as a key modeling input to the Kamakura Risk Manager default probability and default correlation products. Markit provides credit default swap pricing on over 2,600 individual entities based on contribution of mark-to-market prices from 50 dealing firms in the credit default swap market.

"Kamakura's announcement with Markit signals yet another step forward in Kamakura's multiple models approach to credit risk modeling," said Warren Sherman, Kamakura President and Chief Operating Officer. "We believe that our clients need multiple views on the credit worthiness of their counterparties. The credit default swap data from Markit, combined with Kamakura's advanced reduced form and Merton modeling technology, will further enhance the accuracy of our modeling effort and the quality of our clients' credit insights."

"Markit is pleased to provide Kamakura Risk Manager with benchmark credit default swap pricing for our mutual customers," said Mark Hunt, Director of Product Development at Markit. "Kamakura has proven ability in the risk management area and its multiple models approach coupled with Markit data will lead to greater accuracy in the short run and constant model improvements in the long run."

More information can also be found on the Kamakura Corporation web site www.kamakuraco.com or by email to sales@kamakuraco.com and in "Advanced Financial Risk Management" (John Wiley & Sons, 2004) by Kamakura's van Deventer, Kenji Imai, and Mark Mesler (available on www.amazon.com ). "Advanced Financial Risk Management" was recently named "best finance book of 2004" on www.riskbook.com.

About Markit

Markit is the leading industry source for asset valuation data and services supporting independent price verification and risk management in global financial and energy markets. Founded in 2001, the company is an independent enterprise with which the world's leading financial institutions and energy traders work strategically to create price transparency. Today, Markit enjoys the sponsorship of 13 financial institutions who manage assets in excess of $10 trillion, and data contribution relationships with over 50 dealing firms. Markit has designed, launched and acquired over 20 financial data services which are now used by over 300 institutions globally. Areas of product expertise and service include an independent valuation perspective on corporate bonds, syndicated loans, OTC derivatives (credit, equity, FX, rates, energy, power, metals and structured products), as well as dividend forecasting and index and ETF management. For more information about Markit, see www.markit.com

About Kamakura Corporation

Kamakura Corporation is a leading provider of risk management information, processing and software. Kamakura has been a provider of daily default probabilities for listed companies since November, 2002. Kamakura launched its business mortality model for unlisted companies in January 2004. Kamakura is also the first company in the world to develop and install a fully integrated credit risk, market risk, asset and liability management, and transfer pricing system. Kamakura has clients ranging in size from $3 billion in assets to $1 trillion in assets. Kamakura's risk management software is currently used in the United States, Germany, Canada, the United Kingdom, Australia, the Middle East, Africa, Japan, China, Korea and many other countries in Asia.

Kamakura's research effort is led by Professor Robert Jarrow, who was named Financial Engineer of the Year in 1997 by the International Association of Financial Engineers. Professor Jarrow and Dr. van Deventer were both named to the 50 member RISK Hall of Fame in December 2002. Kamakura management has published twenty-one books and more than 100 publications on credit risk, market risk, and asset and liability management. Kamakura has world-wide distribution alliances with IPS-Sendero (www.ips-sendero.com) and Unisys (www.unisys.com), making Kamakura products available in almost every major city around the globe.

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