Retail Credit Risk Management

Moody's Economy.com provides comprehensive Retail Credit Risk Management solutions. Our experience includes working with companies worldwide to improve portfolio performance and meet Basel II regulatory requirements.

Comprehensive Retail Credit Risk Management

Meeting Regulatory Requirements, Minimizing Losses, and Improving Economic Return

We are chosen by clients because of the uniqueness of our services--we are the only major provider that is able to adequately account for both non-economic and economic factors in explaining changes in credit quality. Moody's Economy.com combines expertise in standard credit risk modeling like Probability of Default (PD), Loss Given Default (LGD), Economic Capital requirements and industry leading economic scenario analysis.

Analyzing Portfolio Performance

Understanding the drivers of your portfolio's performance

Moody's Economy.com helps companies model retail lending portfolio performance for all consumer loan types including (but not limited to) mortgages, auto loans, credit cards, installment loans, lines of credit. Our unique approach effectively captures changes in performance due to vintage, seasonality, exogenous factors, and trends. Importantly, we explicitly tie all of these fundamental drivers of performance to the business cycle.

In addition to this we offer more unique and cutting edge modeling services including:

• Forecasting not only the future behavior of existing tranches but the future performance of future tranches as well.
• Developing models to explain variation not already explained by vintage, seasonality and trends.
• Modeling individual record data and constructing credit scores adjusted for business cycle and regional variations.
• Modeling credit risk through the cycle with scenario based analyses and stress testing.
• Creating consumer credit conditions reports, used as inputs in clients planning teams.
• Evaluation, validation, and refinement of existing credit risk and economic models.