AbsolutePD Stress Test Simulator generates scenario-based probability of default predictions at the individual obligor level, based on the set of Federal Reserve System (FRS) macroeconomic variables, and on the result of AbsolutePD®.
Functioning as an add-on module to the APD modeling infrastructure, the APD Stress Test Simulator generates up to five scenarios based on different sets of macroeconomic variables, including three sets of FRS scenarios and two sets of user-defined scenarios.
How the Stress Test Simulator Works
A transparent, granular risk management system
AbsolutePD® Stress Test Simulator provides users with an effective, streamlined approach to complying with Federal Reserve Bank Comprehensive Capital Analysis and Reserve Requirements, resulting in lower operating costs and reduced managerial hours spent to fulfill compliance requirements.
Spend less time complying with regulatory requirements.
Lowers operating costs.
Bolsters reputation among external parties through transparent system.
Prepare, prepare, prepare
Enables strategies for managing your capital over a nine-quarter planning horizon.
Absolute Probability of Default
Identify overall portfolio risk, risk in key segments and customer base, to make agile and informed business decisions