SOURCE: Kamakura Corporation

June 09, 2008 10:00 ET

ORIX Subscribes to Kamakura Risk Information Services Default Probabilities

NEW YORK, NY--(Marketwire - June 9, 2008) - Kamakura Corporation reported Monday that ORIX Corporation (TSE: 8591) (NYSE: IX), a leading integrated financial service group, has subscribed to the Kamakura Risk Information Services (KRIS) public firm default probability service. Kamakura's KRIS service currently provides daily updates on default probabilities, implied ratings, and credit spreads on more than 20,000 public firms in 30 countries. The KRIS service also includes the correlation in default for all pairs of companies in the KRIS service, a total of more than 3 billion default correlations. ORIX plans to use Kamakura's default probability service in order to enhance overseas credit risk management. ORIX, established in 1964 as Orient Leasing, is currently active in 26 countries worldwide.

"The current credit crisis has made it even more obvious that reliance on rating agencies for credit risk assessment is neither best practice nor is it consistent with high standards of corporate governance," said Warren Sherman, Kamakura President and Chief Operating Officer. "Kamakura is honored to have a proven innovator in financial services like ORIX as a client of the KRIS default probability service. It is now well established that KRIS-type 'reduced form' quantitative credit models substantially outperform older approaches like Merton default probabilities and ratings in the credit assessment of public companies. With KRIS default probabilities at its disposal, we believe ORIX will have a substantial competitive advantage in creating risk-adjusted shareholder value."

In its announcement, Kamakura referred readers to research forthcoming in the Review of Financial Studies by Professors Sreedhar T. Bharath and Tyler Shumway of the University of Michigan and in the Journal of Finance by John Campbell (Harvard University), Jens Hilscher (Brandeis University) and Jan Svilagyi (Duquesne Capital). Professor Hilscher was named senior research fellow at Kamakura in January 2008. For copies of these two papers and information on the KRIS default probability service, interested readers should contact Mr. Sherman (, 1-201-600-7542).

About ORIX

ORIX Corporation (TSE: 8591) (NYSE: IX) is an integrated financial services group based in Tokyo, Japan, providing innovative value-added products and services to both corporate and retail customers. With operations in 26 countries and regions worldwide, ORIX's activities include corporate financial services, such as leases and loans, as well as automobile operations, rental operations, real estate-related finance, real estate, life insurance, and investment banking.

About Kamakura Corporation

Founded in 1990, Kamakura Corporation is a leading provider of risk management information, processing and software. Kamakura has been a provider of daily default probabilities and default correlations for listed companies since November 2002. Kamakura launched its collateralized debt obligation (CDO) pricing service KRIS-CDO in April 2007. Kamakura is also the first company in the world to develop and install a fully integrated enterprise risk management system that analyzes credit risk, market risk, asset and liability management, transfer pricing, and capital allocation. Kamakura has served more than 185 clients ranging in size from $3 billion in assets to $1.6 trillion in assets. Kamakura's risk management products are currently used in 27 countries, including the United States, Canada, Germany, the Netherlands, France, Austria, Switzerland, the United Kingdom, Russia, Eastern Europe, the Middle East, Africa, Australia, Japan, China, Korea and many other countries in Asia.

Kamakura has world-wide distribution alliances with IPS-Sendero ( and Unisys (, making Kamakura products available in almost every major city around the globe.

Contact Information