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Given today's economic environment, there's perhaps no greater risk to your business than credit risk. What is the probability that your counterparties or customers will default? In the event of default, what will you recover? Credit Risk Solutions from Fiserv can provide these answers, and much more.
Our sophisticated solution measures potential credit exposure across all asset classes. It supports the range of lending types – from banking book products like mortgages, consumer loans and credit cards, to structured products such as CDOs and option-based derivatives. The technology models the default risk of counterparties and customers, whether public firms, private firms or individuals.
Your personnel can generate and value path-dependent cash flows based on future simulated default events by using the system's integrated, multi-period simulation engine. An integrated stress and scenario-testing framework allows them to identify correlations between risk factors.
Our Credit Risk Solutions provide:
- Reduced form and structural models
- Implied PD models (risky bonds and credit default swaps)
- Logistic regression PD models with user-defined variables
- Collateral and hedge relationships
- Credit VAR
- Credit-adjusted income simulation
- Expected loss distributions and analysis
- Macro risk factor analysis
- Economic capital modeling
Add on our online credit risk information subscription service to incorporate:
- Multiple structural and reduced-form default models
- Term structure of defaults for all names (KDP)
- Pair-wise correlations for all names
- A business mortality model to predict default for credit-risky private firms
- Synthetic CDO valuations under multiple models and correlation approaches
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