Through tailored consulting solutions, the Algo Credit Advisory team (formerly Fitch Solutions Advisory Services) helps firms identify, measure, and manage credit risk. As a committed partner, Algorithmics leverages 20 years of financial engineering experience to provide financial institutions with practical guidance and industry best practices to help refine credit processes and leverage risk management tools to improve business decision making.

The need to maintain profitability against a backdrop of market turmoil is spurring financial institutions to revisit how risk is evaluated and managed. Changing regulations and unpredictable economic conditions are forcing financial institutions to strengthen their internal risk management processes and to develop sophisticated methodologies that will capture a more accurate picture of risk.

Benefits

The Algo Credit Advisory team helps clients to fully understand their risks by identifying, prioritizing, measuring, and managing risk within their portfolios.

The team helps firms to:

  • Manage economic value, regulatory constraints, and reporting requirements
  • Identify high-risk-adjusted return opportunities
  • Minimize uncertainty in corporate performance
  • Meet the regulatory requirements of Basel II, Solvency II, and other regulations regulations
  • Increase production efficiency
  • Maximize their overall franchise value

Who can benefit from Algo Credit Advisory?

  • Global and regional banks
  • Securities firms, insurance companies, hedge funds and investment managers
  • Sovereigns, government agencies, and supranational financial institutions
  • Corporations and commodity firms

Offerings

To assist clients in their risk management activities, the Algo Credit Advisory team offers a customized approach for measuring and managing risk across wholesale and retail portfolios. Clients benefit from the team's experience and knowledge across a wide range of risk areas; from traditional activities to more challenging areas such as structured products, unrated corporate loans, and sovereign credits within financial institutions and privately held firms.

The team's extensive knowledge spans institutional and commercial loans, retail assets, residential and commercial mortgage backed securities, CDOs and CLOs, agricultural loans, small business loans, project finance and off-balance-sheet commitments, derivatives, and catastrophe scenarios.

  • Basel II & Capital Management - The team works with clients to help validate and/or develop internal ratings, credit measures, and related methodologies to meet Basel II Pillar I and II regulations and other capital management requirements. Services span across probability of default (PD), loss given default (LGD), exposure at default (EAD), stress testing, and economic capital.


  • Quantitative Portfolio Analysis and Evaluation - Quantitative advisory services leverage leading-edge techniques and approaches to help clients value and analyze specific portfolios of assets or structured product classes including Collateralized Debt Obligations (CDOs), Residential Mortgage Backed Securities (RMBS), Commercial Mortgage Backed Securities (CMBS), Asset Backed Securities (ABS), and Asset Backed Commercial Paper (ABCP) conduits.


  • Pricing and Customized Modeling Support - The team helps clients identify and understand complex methodological approaches across a diverse spectrum of specialized areas including counterparty risk, exotic derivative valuation, inflation modeling, and commodities derivatives.