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Portfolio management

Driven by the changing economic landscape and market volatility, risk has grown incredibly complex. Financial institutions face the need to manage this complexity holistically while remaining competitive.

Moody's combines portfolio analytics and decision-enabling tools to support banks, insurers, asset owners, and asset managers in identifying, measuring, and managing both risks and opportunities.

With over a century of expertise coupled with the benefits of scalable and modular technology, Moody’s helps our clients anticipate, adapt, and thrive in the new era of exponential risk.  

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Portfolio Management

How can we help?

Moody’s suite of award-winning solutions answers the need for comprehensive portfolio management and steering tools. By combining leading portfolio risk analytics with the performance capabilities of SaaS, we deliver insights with the speed and precision required to drive growth

01
Inform a 360-degree perspective on risk

Elevate your decision-making process with our innovative solutions offering a comprehensive view of different portfolio risks. Our ability to deliver real-time access to portfolio analytics, interactive reports, tailored to unique business needs, empowers you to confidently make decisions.

02
Anticipate potential portfolio outcomes

Explore a multitude of "what if?" scenarios through our market leading analytics. Our robust models and stress testing capabilities enable you to examine multiple potential outcomes so you can build more resilient investment portfolios that can better withstand market volatility.

03
Access proactive monitoring and management

Upgrade to modern portfolio analytics tools that can be tailored to fit your investment process and philosophy. Our always-on monitoring and management solution helps enhance your returns by allowing you to dynamically monitor key variables impacting portfolio performance.

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Speak to our team today

Get in touch
Testimonial

"We chose this cloud-based solution in a bid to achieve higher efficiency and we are expecting shorter processing times as a result. Other considerations included the ability to model credit risk limits within the tool, which enhances confidence, and the improved visuals that provide peace of mind by enabling better analysis of outputs."

- Head of Quantitative Analytics and Liquidity Risk Management
Momentum Metropolitan

Optimization, data, and analytics

01 Portfolio construction and optimization

Portfolio construction and optimization

Moody's supports the investment process with an integrated ecosystem of powerful portfolio solutions that share data, assumptions, and models. This combination of information and technology helps investors gain intelligence-backed insights and a full view of risk for enhanced portfolio construction and optimization.  

Our models, research, software, and credit risk expertise help enable firms to:

  • Build investment portfolios using portfolio construction and optimization tools that help align investment decisions to meet objectives. Define risk types that inform risk management and active asset allocation decisions

  • Stress test asset allocation decisions to help build and maintain resilient portfolios

  • Obtain insights that improve portfolio performance and help meet regulatory requirements

More on portfolio construction and optimization
02 Portfolio analytics

Portfolio analytics

Moody's portfolio analytics solutions deliver a flexible framework that provides extensive coverage of a wide range of asset classes to provide transparency into a portfolio’s exposure, risk, and performance. These tools allow investors to perform scenario analysis, stress testing, ESG and climate analysis, and portfolio risk and attribution analysis.

Our scenario analysis tools, built using comprehensive models and industry expertise, help enable firms to:

  • Stress test portfolio resiliency and perform what-if analyses across all asset classes

  • Use different inputs and model assumptions to analyze the market risk of your portfolio through time allowing you to take proactive mitigation decisions

  • Easily articulate portfolio management strategies to stakeholders with robust reporting

  • Perform ESG and climate analysis across your portfolios helping you test the impact on asset values and alignment to climate objectives

More on portfolio management
03 Credit analysis

Credit analysis

Moody's credit analysis offerings support investors with a holistic view of credit risk, built on credit ratings and research from Moody’s Ratings, and on Moody’s credit risk models using data on public and private entities, and macroeconomic research and forecasts.

Moody’s correlation, economic, and credit risk models and analytics enable your organization to:

  • Measure and benchmark portfolio-level credit risk and return across the entire portfolio

  • Compare portfolio risks and identify specific actions to improve portfolio performance

  • Model and assess the impact of credit risk factors, such as pricing models, risk concentrations, correlations, hedging, and stress tests across portfolios

More on credit risk
04 Public and private company data

Public and private company data

Asset managers and investment professionals leverage our robust data offerings, including public and private entity databases with detailed information on over 462 million entities and 1.8 billion ownership links.

Our data when combined with our credit models and analytics, as well as our AI-enabled news and sentiment analysis capabilities, give buy-side participants a more comprehensive look at adverse credit signals in their portfolios.

We seamlessly integrate our data into proprietary trading and portfolio management applications, providing a smooth and efficient workflow. Beyond traditional financial metrics, our extensive data resources offer a comprehensive view of risk across the entire organization.

More on asset management

Portfolio construction and optimization

Moody's supports the investment process with an integrated ecosystem of powerful portfolio solutions that share data, assumptions, and models. This combination of information and technology helps investors gain intelligence-backed insights and a full view of risk for enhanced portfolio construction and optimization.  

Our models, research, software, and credit risk expertise help enable firms to:

  • Build investment portfolios using portfolio construction and optimization tools that help align investment decisions to meet objectives. Define risk types that inform risk management and active asset allocation decisions

  • Stress test asset allocation decisions to help build and maintain resilient portfolios

  • Obtain insights that improve portfolio performance and help meet regulatory requirements

More on portfolio construction and optimization

Portfolio analytics

Moody's portfolio analytics solutions deliver a flexible framework that provides extensive coverage of a wide range of asset classes to provide transparency into a portfolio’s exposure, risk, and performance. These tools allow investors to perform scenario analysis, stress testing, ESG and climate analysis, and portfolio risk and attribution analysis.

Our scenario analysis tools, built using comprehensive models and industry expertise, help enable firms to:

  • Stress test portfolio resiliency and perform what-if analyses across all asset classes

  • Use different inputs and model assumptions to analyze the market risk of your portfolio through time allowing you to take proactive mitigation decisions

  • Easily articulate portfolio management strategies to stakeholders with robust reporting

  • Perform ESG and climate analysis across your portfolios helping you test the impact on asset values and alignment to climate objectives

More on portfolio management

Credit analysis

Moody's credit analysis offerings support investors with a holistic view of credit risk, built on credit ratings and research from Moody’s Ratings, and on Moody’s credit risk models using data on public and private entities, and macroeconomic research and forecasts.

Moody’s correlation, economic, and credit risk models and analytics enable your organization to:

  • Measure and benchmark portfolio-level credit risk and return across the entire portfolio

  • Compare portfolio risks and identify specific actions to improve portfolio performance

  • Model and assess the impact of credit risk factors, such as pricing models, risk concentrations, correlations, hedging, and stress tests across portfolios

More on credit risk

Public and private company data

Asset managers and investment professionals leverage our robust data offerings, including public and private entity databases with detailed information on over 462 million entities and 1.8 billion ownership links.

Our data when combined with our credit models and analytics, as well as our AI-enabled news and sentiment analysis capabilities, give buy-side participants a more comprehensive look at adverse credit signals in their portfolios.

We seamlessly integrate our data into proprietary trading and portfolio management applications, providing a smooth and efficient workflow. Beyond traditional financial metrics, our extensive data resources offer a comprehensive view of risk across the entire organization.

More on asset management

Strategic asset allocation

01 Buy-side

Buy-side

Strategic asset allocation decisions allow asset owners to manage risk, optimize returns, align investments with long-term goals, fulfill fiduciary responsibilities, and adapt to evolving trends. Supported by consultants and managers, asset owners can create detailed investment strategies, considering trends, fiduciary duties, and operational efficiency.

Our solution provides valuable support to those involved in strategic asset allocation by helping to improve efficiency, productivity, governance, and results, which in turn, helps them successfully deliver on plan objectives. Moreover, our solutions support the creation of diverse and risk-efficient portfolios by helping to meticulously analyze various asset allocation decisions and strategies against specific risk targets and objectives within a flexible modeling framework.

Benefit from a simple-to-use solution that delivers valuable insights and drives more meaningful interactive relationships between pension plan trustees, sponsors, actuaries, consultants, and investment managers.

Some key features include:

Flexible Modeling Framework

  • Analyze asset allocation decisions and investment strategies
     

  • Evaluate risk targets and objectives

  • Utilize diverse asset classes within the framework

Strategic Asset Allocation requirements

  • Help ensure assets meet liabilities within defined risk tolerance
     

  • Help maximize returns from specific asset portfolios

Real-World Scenario Modeling

  • Supports the production of plausible distributions and likely returns
     

  • Covers a wide array of risk factors and asset classes
     

  • Incorporates extensive research on global asset behavior

  • This approach provides a comprehensive and adaptable strategy tailored to individual needs, fostering financial stability and growth

02 Insurance

Insurance

Given their complexity, assessing and estimating insurance liabilities requires a scenario-based approach involving modeling that combines potential economic risks with detailed ALM models specific to the insurance sector.

Moody’s brings these requirements together in a robust framework which includes:

  • Award-winning scenario modeling to project assets and liabilities over a range of planning horizons

  • Efficient approaches for calculating and projecting insurance liabilities and capital

  • Calibration to align modeling framework to economic views and capital market assumptions
     

  • Research and technical insight on capital management and portfolio optimization

  • Governance framework for developing and managing assumptions and views

More on insurance asset liability management

Buy-side

Strategic asset allocation decisions allow asset owners to manage risk, optimize returns, align investments with long-term goals, fulfill fiduciary responsibilities, and adapt to evolving trends. Supported by consultants and managers, asset owners can create detailed investment strategies, considering trends, fiduciary duties, and operational efficiency.

Our solution provides valuable support to those involved in strategic asset allocation by helping to improve efficiency, productivity, governance, and results, which in turn, helps them successfully deliver on plan objectives. Moreover, our solutions support the creation of diverse and risk-efficient portfolios by helping to meticulously analyze various asset allocation decisions and strategies against specific risk targets and objectives within a flexible modeling framework.

Benefit from a simple-to-use solution that delivers valuable insights and drives more meaningful interactive relationships between pension plan trustees, sponsors, actuaries, consultants, and investment managers.

Some key features include:

Flexible Modeling Framework

  • Analyze asset allocation decisions and investment strategies
     

  • Evaluate risk targets and objectives

  • Utilize diverse asset classes within the framework

Strategic Asset Allocation requirements

  • Help ensure assets meet liabilities within defined risk tolerance
     

  • Help maximize returns from specific asset portfolios

Real-World Scenario Modeling

  • Supports the production of plausible distributions and likely returns
     

  • Covers a wide array of risk factors and asset classes
     

  • Incorporates extensive research on global asset behavior

  • This approach provides a comprehensive and adaptable strategy tailored to individual needs, fostering financial stability and growth

Insurance

Given their complexity, assessing and estimating insurance liabilities requires a scenario-based approach involving modeling that combines potential economic risks with detailed ALM models specific to the insurance sector.

Moody’s brings these requirements together in a robust framework which includes:

  • Award-winning scenario modeling to project assets and liabilities over a range of planning horizons

  • Efficient approaches for calculating and projecting insurance liabilities and capital

  • Calibration to align modeling framework to economic views and capital market assumptions
     

  • Research and technical insight on capital management and portfolio optimization

  • Governance framework for developing and managing assumptions and views

More on insurance asset liability management

News and views

article
How small and medium-sized banks can enhance deposits modelling frameworks

Recent events have called into question the reliability of deposits as a primary source of funding for small and medium-sized banks. Stickiness of deposits that generations of bankers had counted on suddenly seem ephemeral.

Source: Moody’s

  • Portfolio management
  • Banking
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article
UK balance sheets: The link between interest rates and deposits

A sharp rate cycle was initiated in 2021 by central banks in a number of major economies which continued throughout 2022. In the case of the UK, this is the fastest that rates have risen in over three decades. As policy rates have fed through to deposits, banks’ balance sheets have been shifting.

Source: Moody’s

  • Portfolio management
  • Banking
Read more
article
Private debt: How much is too much in a credit portfolio?

This case study analyzes the credit risk of a sample portfolio of corporate bonds and private debt holdings. The sample portfolio was intended to mimic a largely safe lender or asset manager that has recently expanded into private debt.

Source: Moody’s

  • Portfolio management
Read more

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