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The Moody's KMV Mission
Moody's KMV is the world's leading provider of quantitative credit analysis tools to lenders, investors, and corporations. We help clients enhance the economic returns in their businesses. We create products and services based upon a sophisticated application of modern financial theory and statistical analysis. These tools transform vast amounts of financial data and knowledge into applied insight to manage credit. As our clients employ our products and services to more effectively manage credit risk, we drive the evolution of more liquid credit markets.
The Moody's KMV Difference
Moody's KMV has approached its business with an eye toward innovation and a focus on the creation of a comprehensive suite of tools and services to enable our clients to make better economic decisions based on state-of-the-art credit analysis.
Moody's KMV products are used by more than 2,000 leading commercial and investment banks, insurance companies, money management firms, and corporations in over 80 countries. Our products and services are used by most of the 100 largest financial institutions in the world. Moody's KMV has offices around the world to serve our global customer base.
Innovative
From our inception, Moody's KMV led the way in helping investors, lenders, and corporations understand and adopt the most advanced methods and tools to measure and manage credit risk. In the late 1980s, we created the Moody's KMV EDF™ (Expected Default Frequency) credit measure, which dramatically changed the way credit risk was measured throughout the world. More recently, we introduced the Moody's KMV RiskCalc® network of globally comparable private company models that similarly revolutionized the way in which middle-market credit is analyzed both by banks and in the structured finance markets. We also released Moody's KMV LossCalc™, the first commercially available predictive model of Loss Given Default (LGD). Our commitment to delivering practical solutions is matched by our commitment to provide education and training to ensure that our clients understand the complex but essential concepts inherent in advanced credit risk analysis and management. In addition to client education, Moody's KMV is an active participant in academic research, sponsoring research grants and academic forums to advance the state of knowledge about credit risk for all market participants.
Comprehensive
Moody's KMV has assembled the largest public and private company default and loss database in the world. Our researchers use a variety of sources to monitor the international credit markets in search of every defaulted public firm. To identify private firm defaults, we have established partnerships with a large number of financial institutions around the world that provide us with extensive data on defaults, financial statements, and loan performance details. The Moody's KMV database contains 30 years of information on over 6,000 public and 220,000 private company default events for a total of 60,000 public and 2.8 million private companies, healthy and distressed, around the world.
Because of this rich data set, Moody's KMV is in a unique position to create credit risk models of unparalleled breadth and depth for major markets around the globe. These models are the foundation for our credit risk measurement tools. Considered to be best-of-breed, they are recognized as the most accurate measures of default risk and feature the most comprehensive geographic coverage of public and private firms. In addition to providing a resource for model development, this data set also provides a fertile test bed for theoretical and practical credit research, including portfolio and default model validation and benchmarking. We have advanced the state of the art in model validation and have published numerous papers detailing our testing procedures and results. Clients have published similar, but independent, tests that also confirm our models' accuracy.
In partnership with our clients, we incorporate our credit risk measurement and modeling capabilities into solutions that allow businesses to better manage credit exposures-from leveraging their fundamental credit analysis resources to constructing better portfolios. Augmented by our training and service offerings, the result is a comprehensive suite of products and services that addresses the credit risk challenges inherent in doing business with firms of all sizes. Our suite of integrated solutions enables institutions to improve all aspects of their credit processes, from prospecting and underwriting to pricing, syndication, and securitization. |
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