Press
Contacts:
Warren Sherman
President
Kamakura Corporation
1-201-600-7542
wsherman@kamakuraco.com
www.kamakuraco.com
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Press
Contacts: |
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HONOLULU, February 3, 2005: Kamakura Corporation reported today that its monthly index of troubled companies in the United States remained strong in January, rising slightly to 12.9% of the public company universe. The Kamakura troubled company index was at its second lowest level since last July, up from 12.0% of the public company universe in December. Kamakura classifies any company with a default probability of more than one percent as troubled. Kamakura also reported that its Jarrow-Chava default probabilities for Tower Automotive Inc., which filed for bankruptcy on February 2, were at 61% on February 1.
"The Kamakura troubled company index remains at levels consistent with the best part of the credit cycle," commented Dr. Donald R. van Deventer, Kamakura Chairman and Chief Executive Officer. "Even with the slight rise this month, the troubled company index remains near its cyclical lows. The number of companies with default probabilities between 1% and 5% was 7.9% of the public company universe, up from 7.0% in December. Companies with default probabilities between 5 and 10% were 1.9% of the universe compared to 1.6% in December. Companies with default probabilities between 10% and 20% were essentially unchanged at 1.3% of the universe. The riskiest firms in the universe, those with default probabilities over 20%, decreased to 1.8% from 2.3% of the universe in December. Tower's bankruptcy filing on February 2 shows that current credit quality problems are concentrated in a small number of companies while the corporate world in general enjoys the benefits of the economic recovery."
Kamakura is offering free trials of its KRIS default probability service to qualified institutions. For more information on Kamakura's free trial offer please visit the Kamakura Corporation web site. Additional information can also be found in Advanced Financial Risk Management (John Wiley & Sons, 2004) by Kamakura's van Deventer, Kenji Imai, and Mark Mesler available on Amazon. Advanced Financial Risk Management was recently named "best finance book of 2004" on riskbook.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 private firm modeling product 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, Israel, 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 and Unisys, making Kamakura products available in almost every major city around the globe.
For more information contact
Kamakura Corporation
2222 Kalakaua Ave.
Suite 1400
Honolulu, HI 96815
Telephone: 1-808-791-9888
Facsimile: 1-808-791-9898
Information: info@kamakuraco.com
Web site: www.kamakuraco.com