MBRM - MB Risk Management

Sep 2001

MB Risk Management (MBRM) are pleased to announce the launch of a major upgrade to their Universal Convertibles Add-in.

The major new feature is the new ability to price and risk manage Options on Convertibles.

Dr. Barakat, Managing Director of MBRM, says "The convertible bond market has had a record year so far in terms of issuance and interest from the market as a whole. As convertible bonds move into the mainstream, so interest naturally increases in structuring and risk managing effective hedges, and also exploiting arbitrage opportunities between convertibles and the underlying stock and bond markets. The ability to buy and sell Options on Convertibles where the strike is quoted as fixed credit spread greatly enhances this activity (analogous to how options can be used to hedge equity portfolios). The option on convertibles therefore gives the holder a hedge against the credit spread of the issuer changing (which may be essential if the holder has a portfolio of bonds from that same issuer which would be negatively affected by any increase in credit spread).

We have taken the decision not to charge extra for the new functionality since we believe all users of our Universal Convertibles Add-in should have the ability to analyze options on convertibles without being forced to buy an additional module or library. It would be interesting to see if our competitors have the same attitude in supporting their current and future users.

This latest update closely follows the launches in the last two months of our Universal LIBOR Market Model Add-in and our enhanced Universal Credit Derivatives Add-in. We aim to release 12 major enhancements per year - which is necessary to maintain and consolidate our market leadership in the analytical library / toolkit sector (which covers convertibles, fixed income, commodities, energy, equities, foreign exchange and money markets).

The feedback and suggestions from our global clients is an essential component in our development process which enable us to maintain our software at the cutting edge of the diverse markets we are in".

Please see our latest price list (http://www.mbrm.com/pricelist.shtml) for the cost of this module.

A free fully functional 30 day trial can be downloaded from MBRM's internet web site : http://www.mbrm.com

Background :

MBRM are developers of the world-famous UNIVERSAL Add-ins. With 30,000+ users world-wide, the UNIVERSAL Add-ins are the most widely-used derivative software for the pricing, risk management, trading, arbitrage, fund management and auditing of securities, options, futures and swaps in the convertible, fixed income, commodities, energy, equities, foreign exchange and money markets. Links with most real-time feeds creates a powerful and dynamic analytical environment. MBRM's software is used world-wide in mission critical applications by most major Investment Houses, Money Managers and Corporate Treasuries.

The UNIVERSAL Add-ins are implemented as function calls in a Dynamic Link Library (DLL), thus assisting in the ease of use and integration into the user's analytical environment. They can therefore be called from Excel, Access, Visual Basic, C, C++, Delphi, Fortran etc. This object-orientated building-block approach provides unequalled speed, cost-effectiveness and flexibility. MBRM's technical support is excellent since the software has been designed and implemented in-house.

For further information, please contact our Sales Team

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