New York, June 19, 2001 -- Savvysoft, the New York-based OTC derivatives software vendor, announced at the SIA Show today the launch of FutureDefaults.com, an extension to the award-winning FreeCreditDerivatives.com site. FutureDefaults.com is the financial market’s first independent source of market implied default rates and yield curves for thousands of domestic and international corporate issuers. The market’s implied default rates from FutureDefaults.com are a measure of the financial market’s sentiment regarding the likelihood of default by a company.

For the first time, financial market professionals will be able to assess the probability that IBM will default in ten years, or the probability that Sanwa Bank will default in five years, without having to do any calculations of their own.

We’re very excited about being able to offer FutureDefaults.com to our clients, said Rich Tanenbaum, founder of Savvysoft and the former head of Derivatives Research at Bankers Trust (now Deutsche Bank). As soon as we announced FreeCreditDerivatives.com, the first question everyone asked was ‘Can I get this for individual issuers?’ It took quite a bit of work do it right, but now we can say it’s here and ready to go.

Savvysoft’s award-winning FreeCreditDerivatives.com site (recipient of the "@RISK" award by Risk Publications' FinanceWise and an "Editor's Choice" by Derivatives Strategy Magazine) offers the market’s implied default rates across a range of industry sectors and across a range of investment grade credit qualities, every day, for free. FreeCreditDerivatives.com has received hundreds of thousands of hits since it went live in 1999 and has gained a substantial following in the derivatives markets and the credit markets. Savvysoft’s FutureDefaults.com takes FreeCreditDerivatives.com four steps further providing:

• implied default rates for individual corporate names
• implied default rates for all credit ratings, not just investment grade
• international corporate coverage, not just domestic
• yield curves as well as default rates

Like FreeCreditDerivatives.com, FutureDefaults.com factors out the default risk that has been impounded by the financial markets into corporate bond prices. FutureDefaults.com expresses this default risk as implied default rates, and recalculates the rates every day using the bond market’s closing prices. Thus, the market’s latest assessment of a company’s default risk is always reflected in the implied default rates from FutureDefaults.com. The software used by FutureDefaults.com is Savvysoft’s TOPS Credit, the market’s leading credit derivatives analytics package. Both FreeCreditDerivatives.com and FutureDefaults.com implied default rates are driven by data from leading vendors, including Bloomberg and Reuters.

Market implied default rates from FutureDefaults.com differ from credit ratings provided by rating agencies such as S&P and Moody’s in significant ways. Rating agencies base their assessment of default risk on a company’s quarterly accounting data, which may be highly subjective, and moreover, impossible to track daily. However, default rates by FutureDefaults.com are based only on the latest traded bond prices, and are always updated daily. Furthermore, the implied default rates from FutureDefaults.com are forward looking, whereas a rating agency’s default risk assessments are inherently backward looking, basing much of their rating on what a company has done, rather than what the marketplace thinks the company will do. FutureDefaults.com conforms to the old adage that the market always knows best.

Savvysoft’s FutureDefaults.com covers over 3,000 corporate issuers worldwide and is updated daily. FutureDefaults.com subscribers may opt to either receive a daily e-mail file or they may also pull down the data from the Internet. They may also obtain FutureDefaults.com in a database format. FutureDefaults.com subscribers also have access to historical information on implied default rates dating back over two years.

Savvysoft is targeting FutureDefaults.com at credit derivatives traders, credit derivatives salespeople, banks, buyers and structurers of collerateralized loan obligations (CLO), corporate bond traders and analysts, insurance companies, hedge funds, corporate treasuries, energy firms, consultants and academics. This is the same group that regularly visits FreeCreditDerivatives.com.

FutureDefaults.com is available by subscription immediately. Savvysoft is offering a free one week introductory trial.

Savvysoft is a New York City-based provider of high-caliber OTC derivatives analytics, derivatives integration software, software for tracking portfolios of OTC derivatives, and market implied default rates. Savvysoft’s analytical products handle OTC derivatives in many markets including: equities, interest rates, FX, commodities, convertibles, MBS, electricity, energy, and credit. The company’s integration products facilitate the integration of analytics into any open third party system or in-house system. Savvysoft products are used by over 2000 institutions in 15 countries worldwide. The institutions include top-tier banks, dealers, brokers, money managers, energy suppliers, corporate treasurers, auditors and consultants. Savvysoft was founded by Rich Tanenbaum, an and the head of Derivatives Research at Bankers Trust (now Deutsche Bank). Rich was a founding member of the first OTC derivatives desk on Wall Street which was at Bankers Trust. Savvysoft's corporate headquarters are located at 17 State Street, 4th Floor, New York, NY 10004 U.S.A. Tel: 212-742-8677; Fax: 212-425-8677; Web: www.savvysoft.com, www.FreeCreditDerivatives.com, www.Analytics4Rent.com.