Moody’s KMV Growth Potential
Increased adoption of MKMV’s sophisticated credit scoring, pricing and portfolio management services:
- Services enable financial institutions to better manage credit portfolios for increased diversification: higher returns or lower risks
- New global bank regulations (“Basle II”) will encourage banks to install credit models to manage regulatory capital
- Opportunities with investment managers and corporates
Opportunities to sell quantitative credit assessment products into the 1,500 banks which use MKMV commercial loan decision support system.
New products:
- CreditEdge Plus: Analysis of default probabilities and recoveries implied from bond, equity and credit default markets, expressed as spreads.
- Improved RiskCalc: Private-firm credit risk analysis incorporating market-based data.
- CDOEdge: Valuation analytics for credit derivatives.
- Basle II: Support for Basle II in commercial loan decision support system.
- Thin MFA: Browser version of commercial loan decision support system to reduce client costs.