IQ Financial Systems Introduces Default Filter-tm Version 3.O and Revolutionizes Credit Risk Modeling.NEW YORK--(BUSINESS WIRE)--Oct. 18, 1999-- Software Tool Precisely and Consistently Measures The Impact of Macroeconomic mac·ro·ec·o·nom·ics n. (used with a sing. verb) The study of the overall aspects and workings of a national economy, such as income, output, and the interrelationship among diverse economic sectors. Conditions on a Corporate Borrower's Risk of Default IQ Financial Systems, Inc., an international provider of global trading, risk management and commercial lending systems, today released version released version - release 3.0 of its Default Filter(TM) front- and middle-office software tool for default risk measurement. The product's new version includes a revolutionary macroeconomic scenario module that enables credit risk managers to quantify Quantify - A performance analysis tool from Pure Software. the impact of macroeconomic factors on a company's future probability of default Probability of default (PD) is a parameter used in the calculation of economic capital or regulatory capital under Basel II for a banking institution. This is an attribute of bank's client. . Default Filter's new macroeconomic module enables credit risk managers to consistently incorporate country risk and industry sector risk into individual company credit risk analysis, which better reflects event risk and its contagion Contagion The likelihood of significant economic changes in one country spreading to other countries. This can refer to either economic booms or economic crises. Notes: An infamous example is the "Asian Contagion" that occurred in 1997 and started in Thailand. in corporate loan pricing and structuring. It offers the unique capability to consistently integrate future expected market and credit changes to allow systematic portfolio risk analysis. Default Filter, which helps guide decisions on portfolio credit risk management and individual loan analysis, is well-suited for all markets but is most valuable in un-rated markets where little reference information is available. The module is expected to be of significant interest to banks eager to take advantage of the new Bank for International Settlements' credit risk framework for credit risk systems that can be validated val·i·date tr.v. val·i·dat·ed, val·i·dat·ing, val·i·dates 1. To declare or make legally valid. 2. To mark with an indication of official sanction. 3. across macroeconomic cycles. "Until now, no software tool could provide a consistent and precise, forward-looking for·ward-look·ing adj. Concerned with or making provision for the future: forward-looking educators; a forward-looking corporate plan. Adj. 1. assessment of the impact of macroeconomic conditions across all borrowers," explains Corinne Neale, President of IQ Financial Systems' Singapore subsidiary and Default Filter product manager. "Managers had nothing that was predictive to assess the impact of changes in interest rates and foreign exchange, for example, on an individual borrower's future default rate." Default Filter's new macroeconomic module took one year to develop and test. Its development involved an intensive effort by IQ Financial professionals and sophisticated theoretical work by academic experts. "The development of the macroeconomic scenario module was the ideal marriage of practical experience and robust theoretical background," says Neale. "The results are ground-breaking. Our clients in Asia are thrilled thrill v. thrilled, thrill·ing, thrills v.tr. 1. To cause to feel a sudden intense sensation; excite greatly. 2. To give great pleasure to; delight. See Synonyms at enrapture. to be given the opportunity of integrating market and credit risks in the management of their credit portfolios." "IQ Financial's development of Default Filter's macroeconomic module is truly revolutionary, as other existing software at best assumes that market and credit events are disconnected," says Dave Salvin, CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of IQ Financial Systems. "Our future plans include integrating Default Filter within RISK IQ, our enterprise-wide risk management system, and LOAN IQ, our commercial lending system." About IQ Financial Systems IQ Financial Systems, with offices in New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of , London, Tokyo and Singapore, is a leading provider of software and services to financial institutions worldwide. The company's product lines encompass a broad range of trading, risk management, and commercial lending systems. IQ Financial combines a strong practitioner's heritage with technical expertise and the drive of an employee-owned software enterprise. IQ Financial has a client list of more than 40 major financial institutions worldwide. For more information regarding IQ Financial products and services, contact Eileen Meador at +1 877 240 IQFS (4737), toll free in the US only, or +1 212 250 7000 internationally. |
|
||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion