Stable Value Agreement (SVA) & Provider Exposure Assessment

Stable Value Agreement (SVA) & Provider Exposure Assessment

Banks turn to us for Stress Tests of their SVP wraps utilizing our proprietary SVP stress-testing software.  Our proprietary SVP stress-testing software facilitates modeling scenarios consistent with regulatory stress-test requirements, including the Comprehensive Capital Analysis and Review (CCAR) exercise, internal budgeting forecasts, and structuring preemptive actions to avoid SVA breaches and other risks.  We’ve even used our SVP analytics to reverse an SVP provider’s refusal to approve a reallocation.

Our SVP modeling can perform both historical simulations and forward-looking projection scenarios

  • Historical simulations can be run as far back as 1976
  • Projection scenarios can reflect assumptions of future interest rate paths, changes in investment-grade credit spreads, convexity characteristics and costs of funding (COF)