DebtX Stress Testing
Given that many institutions do not receive timely updates to their loans’ credit characteristics, many portfolio managers need better tools to evaluate potential risks to their loans via stress testing variables such as collateral values, cash flows, interest rates and market spreads. DebtX can stress loans using stored historical market bottoms, Fed scenarios or client-driven metrics.
Deep Stress Testing expertise and tested pricing models
- Ability to simulate complex scenarios
- Regulatory compliance and disclosures
- Flexibility to supplement and test internal stress testing models
- ALLL (Allowance for Loan and Lease Losses) planning process support
- Portfolio surveillance capabilities
How DebtX Stress Testing Works
Banks and financial institutions of all sizes recognize the potential of stress testing as a strategic tool for senior management to identify vulnerabilities within the business model, address risk and enhance performance during or after downturns. DebtX stress testing and scenario analyses services provide an expert-driven independent analyses or a third-party validations of internal models based on unique models and data sets. Our customizable default calibration can be client driven, DebtX driven or both.