Driven by the changing economic landscape and market volatility, risk has grown incredibly complex. Financial institutions face the need to manage this complexity holistically while remaining competitive.
Moody’s combines portfolio analytics and decision-enabling tools to support banks, insurers, asset owners, and asset managers in identifying, measuring, and managing risks and opportunities.
With over a century of expertise coupled with the benefits of scalable and modular technology, Moody’s helps financial institutions anticipate, adapt, and thrive in the new era of exponential risk.
Our solution produces actionable outputs that help enhance portfolio risk-adjusted performance, ensuring banks build resilient and profitable portfolios.
Calculate risk measures such as internal, economic, regulatory capital
Evaluate shifts in credit quality
Understand correlations and concentrations
Conduct instrument-level analysis
Support pricing, hedging, selling, and structuring
Moody's portfolio analytics solutions deliver a flexible framework that provides extensive coverage of a wide range of asset classes to provide transparency into a portfolio’s exposure, risk, and performance. These tools allow investors to perform scenario analysis, stress testing, ESG and climate analysis, and portfolio risk and attribution analysis.
Our scenario analysis tools, built using comprehensive models and industry expertise, help enable firms to:
Stress test portfolio resiliency and perform what-if analyses across all asset classes
Use different inputs and model assumptions to analyze the market risk of your portfolio through time allowing you to take proactive mitigation decisions
Easily articulate portfolio management strategies to stakeholders with robust reporting
Perform ESG and climate analysis across your portfolios helping you test the impact on asset values and alignment to climate objectives
For institutions looking to make informed decisions and strengthen their portfolio management, understanding the dynamics of name or segment concentration is crucial. This analytical approach goes beyond meeting regulatory requirements; it is a strategic tool for managing credit and aligning portfolio strategies with the institution's risk appetite. The global correlation model framework developed by Moody's plays a pivotal role in this context, offering a detailed analysis of correlations across names and segments to reveal the impact of concentration on a credit portfolio's health.
Through our solution, institutions can access these insights to understand concentration risk drivers, enabling them to navigate the complexities of portfolio management with greater confidence.
Delivered by a team of climate risk experts, this strategic workflow solution enables the Risk function to analyze and strategically act on climate risks and opportunities within the credit portfolio.
This integrated workflow offers tailored climate and credit analytics to help banks and insurers quantify the impact of climate on capital, provisions, and earnings.
With extensive coverage of asset classes and both physical and transition risks under multiple scenarios, our solution supports portfolio planning decisions, rigorous climate scenario analysis and stress testing and facilitates alignment with international regulations.
Use advanced business applications to steer your portfolio towards optimal performance measures with confidence and clarity.
Scenario analysis and stress testing
Risk-based limit setting
What-if analysis
Portfolio optimization techniques
Our solution produces actionable outputs that help enhance portfolio risk-adjusted performance, ensuring banks build resilient and profitable portfolios.
Calculate risk measures such as internal, economic, regulatory capital
Evaluate shifts in credit quality
Understand correlations and concentrations
Conduct instrument-level analysis
Support pricing, hedging, selling, and structuring
Moody's portfolio analytics solutions deliver a flexible framework that provides extensive coverage of a wide range of asset classes to provide transparency into a portfolio’s exposure, risk, and performance. These tools allow investors to perform scenario analysis, stress testing, ESG and climate analysis, and portfolio risk and attribution analysis.
Our scenario analysis tools, built using comprehensive models and industry expertise, help enable firms to:
Stress test portfolio resiliency and perform what-if analyses across all asset classes
Use different inputs and model assumptions to analyze the market risk of your portfolio through time allowing you to take proactive mitigation decisions
Easily articulate portfolio management strategies to stakeholders with robust reporting
Perform ESG and climate analysis across your portfolios helping you test the impact on asset values and alignment to climate objectives
For institutions looking to make informed decisions and strengthen their portfolio management, understanding the dynamics of name or segment concentration is crucial. This analytical approach goes beyond meeting regulatory requirements; it is a strategic tool for managing credit and aligning portfolio strategies with the institution's risk appetite. The global correlation model framework developed by Moody's plays a pivotal role in this context, offering a detailed analysis of correlations across names and segments to reveal the impact of concentration on a credit portfolio's health.
Through our solution, institutions can access these insights to understand concentration risk drivers, enabling them to navigate the complexities of portfolio management with greater confidence.
Delivered by a team of climate risk experts, this strategic workflow solution enables the Risk function to analyze and strategically act on climate risks and opportunities within the credit portfolio.
This integrated workflow offers tailored climate and credit analytics to help banks and insurers quantify the impact of climate on capital, provisions, and earnings.
With extensive coverage of asset classes and both physical and transition risks under multiple scenarios, our solution supports portfolio planning decisions, rigorous climate scenario analysis and stress testing and facilitates alignment with international regulations.
Use advanced business applications to steer your portfolio towards optimal performance measures with confidence and clarity.
Scenario analysis and stress testing
Risk-based limit setting
What-if analysis
Portfolio optimization techniques
Strategic asset allocation decisions allow asset owners to manage risk, optimize returns, align investments with long-term goals, fulfill fiduciary responsibilities, and adapt to evolving trends. Supported by consultants and managers, asset owners can create detailed investment strategies, considering trends, fiduciary duties, and operational efficiency.
Our solution provides valuable support to those involved in strategic asset allocation by helping to improve efficiency, productivity, governance, and results, which in turn, helps them successfully deliver on plan objectives. Moreover, our solutions support the creation of diverse and risk-efficient portfolios by helping to meticulously analyze various asset allocation decisions and strategies against specific risk targets and objectives within a flexible modeling framework.
Benefit from a simple-to-use solution that delivers valuable insights and drives more meaningful interactive relationships between pension plan trustees, sponsors, actuaries, consultants, and investment managers.
Some key features include:
Analyze asset allocation decisions and investment strategies
Evaluate risk targets and objectives
Utilize diverse asset classes within the framework
Help ensure assets meet liabilities within defined risk tolerance
Help maximize returns from specific asset portfolios
Supports the production of plausible distributions and likely returns
Covers a wide array of risk factors and asset classes
Incorporates extensive research on global asset behavior
This approach provides a comprehensive and adaptable strategy tailored to individual needs, fostering financial stability and growth
Given their complexity, assessing and estimating insurance liabilities requires a scenario-based approach involving modeling that combines potential economic risks with detailed ALM models specific to the insurance sector.
Moody’s brings these requirements together in a robust framework which includes:
Award-winning scenario modeling to project assets and liabilities over a range of planning horizons
Efficient approaches for calculating and projecting insurance liabilities and capital
Calibration to align modeling framework to economic views and capital market assumptions
Research and technical insight on capital management and portfolio optimization
Governance framework for developing and managing assumptions and views
Strategic asset allocation decisions allow asset owners to manage risk, optimize returns, align investments with long-term goals, fulfill fiduciary responsibilities, and adapt to evolving trends. Supported by consultants and managers, asset owners can create detailed investment strategies, considering trends, fiduciary duties, and operational efficiency.
Our solution provides valuable support to those involved in strategic asset allocation by helping to improve efficiency, productivity, governance, and results, which in turn, helps them successfully deliver on plan objectives. Moreover, our solutions support the creation of diverse and risk-efficient portfolios by helping to meticulously analyze various asset allocation decisions and strategies against specific risk targets and objectives within a flexible modeling framework.
Benefit from a simple-to-use solution that delivers valuable insights and drives more meaningful interactive relationships between pension plan trustees, sponsors, actuaries, consultants, and investment managers.
Some key features include:
Analyze asset allocation decisions and investment strategies
Evaluate risk targets and objectives
Utilize diverse asset classes within the framework
Help ensure assets meet liabilities within defined risk tolerance
Help maximize returns from specific asset portfolios
Supports the production of plausible distributions and likely returns
Covers a wide array of risk factors and asset classes
Incorporates extensive research on global asset behavior
This approach provides a comprehensive and adaptable strategy tailored to individual needs, fostering financial stability and growth
Given their complexity, assessing and estimating insurance liabilities requires a scenario-based approach involving modeling that combines potential economic risks with detailed ALM models specific to the insurance sector.
Moody’s brings these requirements together in a robust framework which includes:
Award-winning scenario modeling to project assets and liabilities over a range of planning horizons
Efficient approaches for calculating and projecting insurance liabilities and capital
Calibration to align modeling framework to economic views and capital market assumptions
Research and technical insight on capital management and portfolio optimization
Governance framework for developing and managing assumptions and views
Asset managers and investment professionals leverage our robust data offerings, including public and private entity databases with detailed information on over 462 million entities and 1.8 billion ownership links.
Our data when combined with our credit models and analytics, as well as our AI-enabled news and sentiment analysis capabilities, give buy-side participants a more comprehensive look at adverse credit signals in their portfolios.
We seamlessly integrate our data into proprietary trading and portfolio management applications, providing a smooth and efficient workflow. Beyond traditional financial metrics, our extensive data resources offer a comprehensive view of risk across the entire organization.
Get the latest news and thought leadership from Moody’s experts.
Recent events have called into question the reliability of deposits as a primary source of funding for small and medium-sized banks. Stickiness of deposits that generations of bankers had counted on suddenly seem ephemeral.
A sharp rate cycle was initiated in 2021 by central banks in a number of major economies which continued throughout 2022. In the case of the UK, this is the fastest that rates have risen in over three decades. As policy rates have fed through to deposits, banks’ balance sheets have been shifting.
This case study analyzes the credit risk of a sample portfolio of corporate bonds and private debt holdings. The sample portfolio was intended to mimic a largely safe lender or asset manager that has recently expanded into private debt.
Interested in learning more about our offerings? Our solutions specialists are ready to help.