UBS

By Megan Murphy, Justin Baer, Francesco Guerrera, Patrick Jenkins, Jeremy Grant, Martin Arnold and Sam Jones

 By Patrick Jenkins in London and Jonathan Wheatley in São Paulo

Calypso Technology, a multi-asset-class trading and risk management software company, has purchased Codefarm, whose flagship Galapagos platform allows for the construction and management of collateralized debt obligation (CDO) portfolios. Terms of the deal, announced today, were not disclosed.

Given the volume of structured equity products sold to Asian investors over the past year, banks have had to consider alternative ways in which to manage their volatility and correlation risk. Increasingly, product providers are turning to the hedge fund community as another channel for distributing and recycling these positions. A number of houses have been building up hedge fund sales teams over the past year, targeting a small but growing number of hedge fund managers focusing on volatility and correlation trading strategies.

I told you it was coming......

Taiwan's Fubon Financial will acquire 55 per cent of International Bank of Asia (IBA) from Bahrain-based Arab Banking Corp for $2.37 billion, marking the third local bank acquisition in just over a month.

Fubon, Taiwan's second-largest financial services company, will pay Arab Banking $3.68 per share - or 1.16 times book value.