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'''Moody's Analytics''' is a subsidiary of [[Moody's Corporation]] established in 2007 to focus on non-rating activities, separate from [[Moody's Investors Service]]. It performs economic research related to [[credit analysis]], [[performance management]], [[Financial risk modeling|financial modeling]], [[structured analysis]] and [[financial risk management]]. Moody's Analytics also offers software and consulting services, including proprietary economic models and software tools, as well as [[Professional development|professional training]] for the financial services sector, particularly [[Financial risk management|risk management]] accreditation. The company also provides [[Quantitative analyst|quantitative analysis]] and credit risk management tools.
'''Moody's Analytics''' is a subsidiary of [[Moody's Corporation]] established in 2007 to focus on non-rating activities, separate from [[Moody's Investors Service]]. It performs economic research related to [[credit analysis]], [[Financial risk modeling|financial modeling]] and others. Moody's Analytics is composed of divisions such as Moody's KMV, Moody's Economy.com, Moody's Wall Street Analytics, the Institute of Risk Standards and Qualifications, and [[Canadian Securities Institute|Canadian Securities Institute Global Education Inc.]]

Moody's Analytics is composed of a number of different divisions including Moody's KMV, Moody's Economy.com, Moody's Wall Street Analytics, the Institute of Risk Standards and Qualifications, and [[Canadian Securities Institute|Canadian Securities Institute Global Education Inc.]]


==History==
==History==


In 1995, Moody's Corporation started a business unit providing [[Quantitative analyst|quantitative analysis]] services, including credit risk assessment software and services, called Moody's Risk Management Service (MRMS).<ref name="Sinclair 05">{{cite book |title=The New Masters of Capital: American Bond Rating Agencies and the Politics of Creditworthiness |last=Sinclair |first=Timothy J. |authorlink=Timothy J. Sinclair |year=2005 |publisher=Cornell University Press |location=Ithaca, New York |isbn=978-0-8014-7491-0 |page= |pages= |url=http://www.cornellpress.cornell.edu/book/?GCOI=80140100511490 |accessdate=30 August 2011}}</ref><ref name="Airfinance 00">{{cite news |title=Moody's blues |author=Louise Bowman |url=http://www.airfinancejournal.com/Article/2051700/Search/Results/Moodys-blues.html |magazine=Airfinance Journal |date=November 2000 |accessdate=30 August 2011}}</ref>
In 1995, Moody's Corporation started a business unit providing [[Quantitative analyst|quantitative analysis]] services, called Moody's Risk Management Service (MRMS).<ref name="Sinclair 05">{{cite book |title=The New Masters of Capital: American Bond Rating Agencies and the Politics of Creditworthiness |last=Sinclair |first=Timothy J. |authorlink=Timothy J. Sinclair |year=2005 |publisher=Cornell University Press |location=Ithaca, New York |isbn=978-0-8014-7491-0 |page= |pages= |url=http://www.cornellpress.cornell.edu/book/?GCOI=80140100511490 |accessdate=30 August 2011}}</ref><ref name="Airfinance 00">{{cite news |title=Moody's blues |author=Louise Bowman |url=http://www.airfinancejournal.com/Article/2051700/Search/Results/Moodys-blues.html |magazine=Airfinance Journal |date=November 2000 |accessdate=30 August 2011}}</ref>


In early 2000 Moody's acquired the Software Products Group of [[Crowe Horwath|Crowe, Chizek & Co.]], then the eighth largest accounting and consulting firm in the U.S.,<ref>{{cite news |title=Moody's aims to turn former Crowe, Chizek unit into global business |author=Paul Dodson |newspaper=South Bend Tribune |date=20 February 2000}}</ref> which brought software used by banks to analyze the risk in taking on commercial loans.<ref>{{cite news |title=Moody's Acquires Commercial Loan Software Operation |author=Charles Keenan |newspaper=The American Banker |date=28 January 2000}}</ref> The same year, MRMS partnered with [[RiskMetrics]] to develop software that combined credit risk analysis with portfolio management.<ref name="Airfinance 00"/>
In the late 1990s, Moody's began pursuing partnerships and acquisitions to expand MRMS's client base and capabilities.<ref name="Airfinance 00"/>


In early 2000 Moody's acquired the Software Products Group of [[Crowe Horwath|Crowe, Chizek & Co.]], then the eighth largest accounting and consulting firm in the U.S.,<ref>{{cite news |title=Moody's aims to turn former Crowe, Chizek unit into global business |author=Paul Dodson |newspaper=South Bend Tribune |date=20 February 2000}}</ref><ref>{{cite press release |title=Moody's Acquires Crowe Chizek's Software Products Group; Combined Client Base to Reach Over 4,000 Financial Institutions in 50 States and 46 Countries |publisher=Moody's Corporation |date=28 January 2000 |url=http://ir.moodys.com/releasedetail.cfm?ReleaseID=288574 |accessdate=30 August 2011}}</ref> which brought software used by banks to analyze the risk in taking on commercial loans.<ref>{{cite news |title=Moody's Acquires Commercial Loan Software Operation |author=Charles Keenan |newspaper=The American Banker |date=28 January 2000}}</ref> The same year, MRMS partnered with [[RiskMetrics]] to develop software that combined credit risk analysis with portfolio management.<ref name="Airfinance 00"/>
In February 2002, Moody's purchased KMV (Kealhofer, McQuown and Vasicek), a [[San Francisco]]-based quantitative [[Financial risk management|risk management]] firm, and merged it with MRMS to create Moody's KMV.<ref>{{cite news |title=Mergers & Acquisitions: Moody's to Buy Credit Risk Analyzer KMV for $210 Million |author=Aaron T. Smith |newspaper=The Bond Buyer |date=12 February 2002}}</ref> The company acquired KMV's clients and its software tool for calculating the probability of credit default, EDF (Expected Default Frequency). Moody's KMV integrated financial modeling software from each former company and, in 2003, debuted its credit risk management system, Credit Monitor.<ref name="Faille Jul 03">{{cite news |title=Moody's KMV Integrates RiskCalc with Credit Monitor |author=[[Christopher Faille]] |newspaper=HedgeWorld Daily News |date=24 July 2003}}</ref>

In February 2002, Moody's purchased KMV (Kealhofer, McQuown and Vasicek), a [[San Francisco]]-based quantitative [[Financial risk management|risk management]] firm, and merged it with MRMS to create Moody's KMV.<ref>{{cite news |title=Mergers & Acquisitions: Moody's to Buy Credit Risk Analyzer KMV for $210 Million |author=Aaron T. Smith |newspaper=The Bond Buyer |date=12 February 2002}}</ref><ref>{{cite web |url=http://www.moodysanalytics.com/About-Us/History/KMV-History.aspx |title=KMV History |work=moodysanalytics.com |publisher=Moody's Analytics |accessdate=30 August 2011}}</ref> The company acquired KMV's clients and its software tool for calculating the probability of credit default, EDF (Expected Default Frequency).<ref>{{cite press release |title=Moody’s Corporation Completes Acquisition of KMV |publisher=Moody's Corporation |date=15 April 2002 |url=http://ir.moodys.com/releasedetail.cfm?ReleaseID=288619 |accessdate=30 August 2011}}</ref> Moody's KMV integrated financial modeling software from each former company and, in 2003, debuted its credit risk management system, Credit Monitor.<ref name="Faille Jul 03">{{cite news |title=Moody's KMV Integrates RiskCalc with Credit Monitor |author=[[Christopher Faille]] |newspaper=HedgeWorld Daily News |date=24 July 2003}}</ref>


In 2005, Moody's acquired Economy.com, an economics research and analytics firm based in [[West Chester, Pennsylvania]], adding services related to economic and demographic research, [[Country risk|country analysis]], and data on industrial, financial and regional markets.<ref>{{cite web |url=http://www.allbusiness.com/legal/856708-1.html |title=Moody’s Acquires Economy.com |date=1 December 2005 |work=Allbusiness.com |accessdate=30 August 2011}}</ref>
In 2005, Moody's acquired Economy.com, an economics research and analytics firm based in [[West Chester, Pennsylvania]], adding services related to economic and demographic research, [[Country risk|country analysis]], and data on industrial, financial and regional markets.<ref>{{cite web |url=http://www.allbusiness.com/legal/856708-1.html |title=Moody’s Acquires Economy.com |date=1 December 2005 |work=Allbusiness.com |accessdate=30 August 2011}}</ref>
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==Products==
==Products==
Moody's Analytics' flagship products include Market Implied Ratings (MIR) and Expected Default Frequency (EDF) software packages. MIR applies Moody's ratings scale to credit and equity market [[price signal]]s so users can identify investment opportunities; EDF estimates a company's credit default probability based on quantitative factors including [[market capitalization]], [[Equity (finance)|equity]], [[Volatility (finance)|volatility]] and [[capital structure]].<ref name="Moody’s Corporation Investor Relations">{{cite web |url=http://ir.moodys.com/overview.cfm |title=Moody’s Corporation Investor Relations |work=ir.moodys.com |publisher=Moody's Corporation |accessdate=30 August 2011}}</ref> The division also provides financial institutions with analytical and [[Financial risk management|risk management]] software, including its RiskAnalyst credit risk management software, which is used to provide analysis of credit data for [[Loans|commercial loan]]s and to calculate risk.<ref name="Crosman Jan 10">{{cite news |title=Moody's Analytics Acquires Commercial Mortgage Modeling Software |author=Penny Crosman |url=http://www.informationweek.com/news/222301691 |work=InformationWeek |date=20 January 2010 |accessdate=29 August 2011}}</ref>
Moody's Analytics' products include Market Implied Ratings (MIR) and Expected Default Frequency (EDF) software packages. MIR applies Moody's ratings scale to credit and equity market [[price signal]]s so users can identify investment opportunities; EDF estimates a company's credit default probability based on quantitative factors including [[market capitalization]], [[Equity (finance)|equity]], [[Volatility (finance)|volatility]] and [[capital structure]].<ref name="Moody’s Corporation Investor Relations">{{cite web |url=http://ir.moodys.com/overview.cfm |title=Moody’s Corporation Investor Relations |work=ir.moodys.com |publisher=Moody's Corporation |accessdate=30 August 2011}}</ref> The division also provides financial institutions with analytical and [[Financial risk management|risk management]] software, including its RiskAnalyst credit risk management software, which is used to provide analysis of credit data for [[Loans|commercial loan]]s and to calculate risk.<ref name="Crosman Jan 10">{{cite news |title=Moody's Analytics Acquires Commercial Mortgage Modeling Software |author=Penny Crosman |url=http://www.informationweek.com/news/222301691 |work=InformationWeek |date=20 January 2010 |accessdate=29 August 2011}}</ref>

In addition to this, Moody’s Analytics delivers an industry-leading suite of tools for regulatory risk management and reporting, as well as for managing balance sheet and liquidity risk. These products and services enable institutions to comply with changing regulatory requirements, from stress testing and Dodd-Frank to Basel, Solvency II and transfer pricing. The firm’s software packages provide the foundation for improved strategy and performance, while [http://www.moodysanalytics.com/products-and-solutions/enterprise-risk-solutions/regulatory-and-compliance/riskauthority.aspx RiskAuthority] offers a comprehensive solution for Basel I, II & III regulatory compliance, and [http://www.moodysanalytics.com/products-and-solutions/enterprise-risk-solutions/regulatory-and-compliance/riskintegrity.aspx RiskIntegrity] helps insurance companies to comply with all facets of the Solvency II directive.


==References==
==References==

Revision as of 21:35, 2 March 2013

Moody's Analytics
Company typeSubsidiary
IndustryFinancial services
Founded2007 (2007)
Headquarters
7 World Trade Center
New York City
,
United States
ServicesCredit analysis, Financial risk management
Number of employees
1,400
ParentMoody's Corporation
Websitewww.moodysanalytics.com
Footnotes / references
[1]

Moody's Analytics is a subsidiary of Moody's Corporation established in 2007 to focus on non-rating activities, separate from Moody's Investors Service. It performs economic research related to credit analysis, financial modeling and others. Moody's Analytics is composed of divisions such as Moody's KMV, Moody's Economy.com, Moody's Wall Street Analytics, the Institute of Risk Standards and Qualifications, and Canadian Securities Institute Global Education Inc.

History

In 1995, Moody's Corporation started a business unit providing quantitative analysis services, called Moody's Risk Management Service (MRMS).[2][3]

In early 2000 Moody's acquired the Software Products Group of Crowe, Chizek & Co., then the eighth largest accounting and consulting firm in the U.S.,[4] which brought software used by banks to analyze the risk in taking on commercial loans.[5] The same year, MRMS partnered with RiskMetrics to develop software that combined credit risk analysis with portfolio management.[3]

In February 2002, Moody's purchased KMV (Kealhofer, McQuown and Vasicek), a San Francisco-based quantitative risk management firm, and merged it with MRMS to create Moody's KMV.[6] The company acquired KMV's clients and its software tool for calculating the probability of credit default, EDF (Expected Default Frequency). Moody's KMV integrated financial modeling software from each former company and, in 2003, debuted its credit risk management system, Credit Monitor.[7]

In 2005, Moody's acquired Economy.com, an economics research and analytics firm based in West Chester, Pennsylvania, adding services related to economic and demographic research, country analysis, and data on industrial, financial and regional markets.[8]

The following year, the firm acquired Wall Street Analytics, a San Francisco-based financial analysis and monitoring software developer,[9] which then became Moody's Wall Street Analytics.[10] The acquisition brought with it software for financial risk management, including a tool for collateralized debt obligation (CDO) valuation.[10][11]

In August 2007, Moody's Corporation created a new division for its combined non-ratings businesses, Moody's Analytics, to operate separately from Moody's Investors Service.[12] Subsidiary companies that make up Moody's Analytics today include Moody's KMV, Economy.com, Wall Street Analytics, Fermat International, Enb Consulting Ltd., The Institute of Risk Standards and Qualifications (iRSQ) and, most recently, CSI Global Education Inc. The division began operations with Moody's KMV, Economy.com and Wall Street Analytics, and other subsidiary companies were added to Moody's Analytics through later acquisitions.

In 2008, Moody's Analytics acquired Fermat International,[13] a Brussels-based provider of software for financial risk and performance management in the banking sector,[14][15][16] used by over 100 banks across 30 countries in Europe, the Middle East and Asia.[14][16]

In December 2008, Moody's Analytics added Enb Consulting Ltd., a provider of professional training and career services in the financial sector based in Surrey, England, to Moody's Analytics Training Services.[17] Its services include technical and soft skills training programs for banking and capital markets professionals.[18]

In 2010, Moody's Analytics established the Institute of Risk Standards and Qualifications (iRSQ), a training body providing competency accreditation in financial risk management.[19] The iRSQ's qualifications have been recognized by the UK Office of Qualifications and Examinations Regulation (Ofqual) and its certification program is endorsed by the Financial Services Skills Council as the standard for training in applied risk management.[20]

Moody's Analytics further added to its training services in November 2010, when it acquired Canadian Securities Institute Global Education Inc. (CSI), a provider of training and certification for the financial sector, best known for its introductory course to stocks and bonds, the Canadian Securities Course, which is mandatory for Canadian licensed investment advisers.[19][21]

In June 2010, Moody's Analytics formed a strategic alliance with Experian to provide software for financial institutions to manage consumer loan portfolios. The first product provided by the companies was Moody's CreditCycle Plus, a tool to forecast potential losses and provide stress testing of loan portfolios.[22]

In March 2011 Moody's Analytics announced the release of a software program developed by Moody's Research Labs, the Mortgage Portfolio Analyzer, to assist portfolio managers in managing credit risk.[23]

In November 2011, Moody’s Corporation acquired a major stake in Copal Partners, providers of outsourced research and analytical services to institutional customers. This acquisition extends the research, data, software and training services offered by Moody’s Analytics.[24]

In December 2011, Moody’s Corporation added Barrie & Hibbert Limited, a provider of risk management modeling tools for insurance companies, to Moody’s Analytics enterprise risk management services. The acquisition broadens Moody’s Analytics suite of software solutions for the insurance and pension sectors. Barrie & Hibbert’s Economic Scenario Generator (ESG) is widely recognized as an industry standard for valuing and projecting assets and liabilities and assessing risk and capital positions.[25]

Products

Moody's Analytics' products include Market Implied Ratings (MIR) and Expected Default Frequency (EDF) software packages. MIR applies Moody's ratings scale to credit and equity market price signals so users can identify investment opportunities; EDF estimates a company's credit default probability based on quantitative factors including market capitalization, equity, volatility and capital structure.[26] The division also provides financial institutions with analytical and risk management software, including its RiskAnalyst credit risk management software, which is used to provide analysis of credit data for commercial loans and to calculate risk.[27]

References

  1. ^ "About Moody's Analytics". moodysanalytics.com. Moody's Analytics, Inc. 2011. Retrieved 30 August 2011.
  2. ^ Sinclair, Timothy J. (2005). The New Masters of Capital: American Bond Rating Agencies and the Politics of Creditworthiness. Ithaca, New York: Cornell University Press. ISBN 978-0-8014-7491-0. Retrieved 30 August 2011.
  3. ^ a b Louise Bowman (November 2000). "Moody's blues". Airfinance Journal. Retrieved 30 August 2011.
  4. ^ Paul Dodson (20 February 2000). "Moody's aims to turn former Crowe, Chizek unit into global business". South Bend Tribune.
  5. ^ Charles Keenan (28 January 2000). "Moody's Acquires Commercial Loan Software Operation". The American Banker.
  6. ^ Aaron T. Smith (12 February 2002). "Mergers & Acquisitions: Moody's to Buy Credit Risk Analyzer KMV for $210 Million". The Bond Buyer.
  7. ^ Christopher Faille (24 July 2003). "Moody's KMV Integrates RiskCalc with Credit Monitor". HedgeWorld Daily News.
  8. ^ "Moody's Acquires Economy.com". Allbusiness.com. 1 December 2005. Retrieved 30 August 2011.
  9. ^ "Moody's Corporation Acquires Wall Street Analytics". Allbusiness.com. 18 December 2006. Retrieved 30 August 2011.
  10. ^ a b "Moody's acquires Wall Street Analytics for undisclosed sum". The Associated Press. 18 December 2006.
  11. ^ Suzanne Walker (9 December 2003). "Risk Management: Wall Street Analytics Unveils New CDO Valuation Tool". The Bond Buyer.
  12. ^ Matthew Hanson (8 August 2007). "Moody's Corp. Divides Itself, Creates Non-Ratings Analytics Company". The Bond Buyer. p. 3.
  13. ^ "Moody's Analytics to Acquire Fermat International". StreetInsider.com. 15 September 2008. Retrieved 26 August 2011.
  14. ^ a b David Roisen (16 September 2008). "Moody's to acquire risk management software firm". SNL Kagan Media & Communications Report.
  15. ^ "Moody's Corporation acquires Fermat International". Financial Deals Tracker. 14 October 2008.
  16. ^ a b Carolyn Murphy (16 September 2008). "Moody's bags Fermat". Daily Deal/The Deal.
  17. ^ Taigh Khan (22 December 2008). "Moody's unit acquires Enb Consulting". SNL Kagan Media & Communications Report.
  18. ^ "Moody's Analytics Acquires Enb Consulting" (Press release). Moody's Corporation. 18 December 2009. Retrieved 30 August 2011.
  19. ^ a b "Moody's acquires Canadian Securities Course provider CSI Global for $155 million". The Canadian Press. 22 November 2010.
  20. ^ "iRSQ to certify risk competency standards". CPI Financial. 13 September 2010.
  21. ^ "Moody's Corp. Buys CSI Global Education". Professional Services Close-Up. 26 November 2010.
  22. ^ "Experian and Moody's Analytics partner to offer consumer credit loss-forecasting and stress-testing product". Mortgage Banking. June 2010.
  23. ^ "Moody's Analytics Launches Mortgage Portfolio Analyzer (MPA)" (Press release). Business Wire. 8 March 2011. Retrieved 30 August 2011.
  24. ^ “Moody's Corporation Acquires Majority Stake in Copal Partners” ir.moodys.com. Moody’s Corporation. Retrieved 21 February 2013.
  25. ^ “Moody's Corporation Acquires Barrie & Hibbert” ir.moodys.com. Moody’s Corporation. Retrieved 21 February 2013.
  26. ^ "Moody's Corporation Investor Relations". ir.moodys.com. Moody's Corporation. Retrieved 30 August 2011.
  27. ^ Penny Crosman (20 January 2010). "Moody's Analytics Acquires Commercial Mortgage Modeling Software". InformationWeek. Retrieved 29 August 2011.
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