Creditflux Newsletter

San Francisco-based Calypso Technology has announced that it is buying the technology built by UK-based software firm Codefarm which is used to construct credit portfolios. It is buying the product, known as Galapagos, for an undisclosed sum, and bringing Codefarm's founder Jeremy Mabbitt on board as vice-president for technology head for this unit of Calypso. Another former Calypso employee, John Mooren, is general manager of the business.
The Galapagos technology is based on a concept known as evolutionary algorithms, and was developed into an application that allows investors to optimise CSO portfolios to achieve a desired rating. However, the downturn in the CSO new issue business is thought to have affected Codefarm's growth plans. Calypso, which provides a trade management product widely used by credit derivative dealers, says it hopes to leverage Galapagos for its existing product and to expand its applications.
Steve Gibson, who also joins Calypso from Codefarm, is responsible for sales of the Galapagos product.