News Article

Julius Finance oversubscribed in market eager for credit risk management solutions

Julius Finance, a provider of advanced services and solutions to the $45 trillion credit derivatives market, has announced it has successfully closed its first round of seed stage investment.

Julius Finance, a provider of advanced services and solutions to the $45 trillion credit derivatives market, has announced it has successfully closed its first round of seed stage investment.

Peter Cotton, CEO and Founder of Julius Finance, said he is pleased to close the first round with such an outstanding level of international interest in the company's products.

"The oversubscription can be partially attributed to the current interest in making the most of the credit crisis and the need for risk management," Dr. Cotton said.

Julius Finance's research into correlation of sensitive financial instruments and the mathematics underlying their risk management comes at a timely moment for hedge funds and banks internationally.
"Practitioners, academics and regulators have failed to be convinced by existing models, noting they cannot be relied upon to produce arbitrage-free valuations," he said. "Models were developed in part to provide consumer protection at the institutional level but they appear to have failed in this regard. We think the buy side will be especially interested in what we have to offer".

Julius' analytics are based on proprietary mathematical techniques which take into account prices of all liquidly traded securities. In contrast, prior technologies have only been able to use segments of the market data.

The financing round was well oversubscribed by sophisticated investment professionals from Wall Street and international investors including top-tier practitioners and experts in mathematical finance. The company will use proceeds of the seed-stage funding to accelerate the design and development of its products.

"It's pleasing to see experts in the field backing our company and they will bring a wealth of business acumen and specific commercial perspective to help broaden our customer base," Dr. Cotton said.

Release of the first commercial product, JuliusBridge^TM, is imminent and will provide end users with a new perspective on CDX and iTraxx tranche pricing. JuliusBridge is a software-as-a-service tool which provides indicative prices for custom maturities and non-traded attachment points.

About Julius Finance
Julius Finance, based in New York, is a provider of advanced services and solutions to participants in the $45 trillion credit derivatives market. Julius Finance develops valuation and risk management analytics for correlation trading and fixed income investment.

For more information, contact:
Nicholas de Jong (Vice President Engineering and Operations)
Julius Finance
Phone:+1 (646) 378 2123
Facsimile:+1 (212) 313 9403
Email:press@juliusfinance.com