Portfolio management

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.

How can we help?

Our suite of award-winning SaaS solutions meets the need for active credit portfolio management. With forward-looking analytics and comprehensive asset class coverage, our solution supports robust scenario planning and resilience building, ensuring growth and regulatory alignment.

Unlock a 360-degree perspective on risk and return

Elevate your decision-making processes by unlocking a comprehensive view of current and emerging portfolio risks. Our ability to deliver real-time access to portfolio analytics, interactive reports, tailored to unique business needs, empowers you to confidently assess risk.

Anticipate potential portfolio outcomes

Explore a multitude of ‘what-if’ scenarios through our market-leading analytics and comprehensive coverage. Our robust models and stress testing capabilities enable you to examine multiple potential outcomes so you can build more resilient portfolios that can better withstand market volatility.

Manage and deploy capital efficiently

By managing concentrations and incorporating economic capital calculations, banks can align better with regulatory requirements and capital adequacy goals. Our solution helps balance capital reserves and investment activities, ensuring the growth of shareholder value.

Access proactive monitoring and management

Upgrade to the latest monitoring tools that can be tailored to fit your portfolio management process and philosophy. Our always-on monitoring solution coupled with the power of early warning signals allows you to dynamically monitor key variables impacting portfolio performance.

Credit portfolio management

Risk/return measurement

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

Portfolio analytics

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

Concentration risk

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. 

Climate and emerging risk

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. 

Portfolio optimization

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