Overview of Moody’s Analytics
Moody’s Analytics, a subsidiary of Moody’s Corporation, is a comprehensive platform that provides tools, solutions, and best practices for measuring and managing investment risk, economic forecasting, and financial intelligence. Here is a detailed look at what the product does and its key features and functionality.
Purpose and Scope
Moody’s Analytics is designed to help organizations and professionals across various industries, including capital markets, finance, accounting, compliance, and risk management, navigate the complexities of modern business and capitalize on global market developments. The platform aims to enable risk professionals to make informed decisions and build successful strategies by providing in-depth analysis, data, and insights.
Key Features and Functionality
Risk Management and Credit Analysis
- Moody’s Analytics offers robust solutions for credit analysis, including credit origination tools that help lenders make more profitable loans faster. It also provides credit risk models, such as the RiskCalc Plus, which assesses the probability of default and estimates expected losses.
Economic Forecasting and Data
- The platform is renowned for its global economic data, forecasts, and analyses. It includes a Global Macroeconomic Model that produces high-quality forecasts and scenarios for over 120 countries, integrating more than 600 million time series covering 180 countries. This data is crucial for tracking economic releases, key events, and country risk scores for 190 countries.
Data and Analytics Tools
- Moody’s Analytics provides comprehensive datasets and data management tools, including data visualization. The suite includes products like the Moody’s Analytics Credit Risk Calculator (CRC), Market Implied Ratings Analytics (MIR), and various economic models and workstations. These tools help in forecasting probabilities of default, loss given default, and prepayments for retail credit lending portfolios.
Industry-Specific Solutions
- Consumer Credit: Moody’s offers solutions like the Moody’s CreditCycle™, which includes ready-made cohort models and custom-built loan-level models to assess portfolio performance relative to industry trends.
- Insurance: The platform provides stochastic models, software, and services to help insurers assess financial impacts, determine capital requirements, and develop capital management strategies.
- Investments & Pensions: It includes scenario-based asset-liability modeling, investment design, and risk management solutions.
- Structured Finance: Moody’s Analytics offers market insight through research, data, and analytics for structured finance products.
Regulatory and Accounting Compliance
- The platform addresses global regulations and accounting frameworks, such as IFRS-9 and CECL, with tools for regulatory reporting, stress testing, and compliance planning.
Training and Advisory Services
- Moody’s Analytics provides learning solutions and certifications to enhance global financial risk management understanding and proficiency. The company also offers advisory services, including implementation, training, and customer support, to help organizations improve their risk management practices.
Integrated Platforms
- The platform integrates enterprise Asset and Liability Management (ALM), liquidity risk management, funds transfer pricing, and regulatory reporting capabilities. It also includes portfolio management tools with research, data, models, and multi-asset class credit risk tools.
Benefits
- Comprehensive Insights: Moody’s Analytics offers a single source for real-time analysis of global economic and financial market data, events, trends, and risks.
- Expertise: The platform leverages the expertise of over 1,000 seasoned credit analysts and 60 experienced economists across all asset classes and geographies.
- Custom Solutions: It provides customized advisory engagements and tailored models to address specific business challenges.
- Holistic View: The platform enables corporations, governments, and other entities to monitor regional market performance, anticipate demand and sales, and assess consumer credit risk with a holistic view.
In summary, Moody’s Analytics is a powerful tool for risk professionals and organizations seeking to navigate complex financial markets, manage risk, and make informed decisions. Its extensive range of solutions, data, and analytical tools make it an essential partner for those operating in global financial markets.