SunGard Targets Credit Risk with Credient Update

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Byline: Heather McKenzie

SunGard Trading and Risk Systems has upgraded its Credient global credit risk management and control software, which includes support for credit derivatives - one of the fastest-growing sectors of the debt and credit markets.Positions in credit derivatives, which ease the transfer and repackaging of credit risk, grew from $108bn ([euro]102bn) in notional principal in 1998 to $1.6 trillion in June 2002, according to the International Swaps and Derivatives Association.

The inherent credit exposures of credit derivatives can be incorporated into Credient so that they can be included in an investment bank's overall credit portfolio analysis and management.

SunGard Trading and Risk Systems, the financial trading and risk management arm of financial IT software group SunGard, said Credient 2.1 improves support for integrated credit portfolio analysis and exposure modelling, with the addition of credit value at risk calculations and support for issuer risk.

The package has been designed to meet the proposals on risk set out in the Bank for International Settlements' Basel II Accord. …