Stable Value Agreement and Provider Exposure Assessment
Banks turn to us for stress tests of their stable value wraps utilizing our proprietary stress-testing software. Our software models scenarios consistent with regulatory stress-test requirements, including:
- Comprehensive Capital Analysis and Review exercise;
- Internal budgeting forecasts;
- Structuring preemptive actions to avoid stable value agreement breaches and other risks.
We’ve even used our analytics to reverse a stable value provider’s refusal to approve a reallocation.
Our 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
To learn more about our Stable Value analytic capabilities, contact us by clicking here.