Our mission : transforming risk analytics into competitive edge for leading financial professionals
Download ALGOSAVE one-page here.
What are we offering ?
- With Algosave, investors and financial institutions gain an unfair competitive advantage by better pricing and managing their corporate exposure. Be it in their loan, bond or equity portfolios.
- ALGOSAVE offers investors and financial institutions a Machine Learning and Big Data based, quantitative corporate valuation and credit-risk Financial Technology.
Where is our uniqueness vs. traditional solutions?
- Algosave FinTech offers valuation and investment decision making solutions by working with rich, real-life universe of possible outcomes that handle increasing complexity.
- Departing from traditional credit models – which are either equity oriented (structural models) or bond oriented (reduced form), ALGOSAVE naturally merges both worlds. Hence, ALGOSAVE delivers – for every corporate borrower – multiyear ,”live” and scenario-sensitive critical credit attributes term-structure (PD, LGDs) as well as asset value and asset return multi-tail distributions.
- Beyond single corporates, and on a portfolio-wide basis, ALGOSAVE delivers powerful insights into issues of credit dependencies, such as contagion risk between borrowers, industries, geographies, ratings, or even bespoke portfolio.
With Algosave by your side, you can be sure you gain competitive edge for investment, corporate loan underwriting, capital management and trading.
A few examples of deliverables…
- Financial advisers and asset managers : gain competitive edge with high-yielding risk-return efficient bond issues and credit portfolios. Bundled with peace of mind and BANG ON their risk-return TARGET.
- ALGOSAVE carefully – and fully automated – selected bonds and credit portfolios are based on ALGOSAVE proprietary selection technology which uses three innovative concepts, borrowed from the banking industry:
- Bond issuer Expected Credit Loss & Expected Return : ALGOSAVE proprietary financial technology selects the most risk-return efficient corporate bond issuers using their respective Expected Credit Loss and Expected-Return term structure. ALGOSAVE ECL handily merges 2 credit-specific risk metrics : Probability and Default (PD) and Loss Given Default (LGD) term structure. Issuers must also first pass thru ALGOSAVE proprietary stringent selection process which protects investors while also allowing them to reach out for high-yielding assets with greater peace of mind.
- Portfolio Expected Loss : ALGOSAVE proprietary financial technology builds risk/return efficient high-yielding bond portfolios using the Expected Loss concept. The EL is instrumental in (a) creating investor specific and optimal risk-return asset allocation as well as (b) nourishing an informed dialogue between investors and their assets managers.
- Finally, and by putting issuers and credit portfolios thru ALGOSAVE proprietary stress-testing technology, ALGOSAVE offers 3 high-yielding, diversified and risk-return efficient portfolios of bonds. ALGOSAVE high-risk bond portfolio, ALGOSAVE average-risk bond portfolio and ALGOSAVE low-risk bond portfolio.ALGOSAVE Issuer dashboard and bond portfolio builder : all-in-one issuer risk-reward dashboard.
- ALGOSAVE issuer dashboard is a user-friendly tool that lets you easily check if your bond portfolios are aligned with your clients risk appetite. It also allows you to potentially increase you risk-return while staying within the boundaries of your mandate. Use ALGOSAVE issuer dashboard to increase your performance with peace of mind.
- Fundamental Insights for investment and capital management.
ALGOSAVE portfolio PD, portfolio LGD and portfolio PD-LGD correlation illustrated here in stressed macro-economic conditions @ 5 year.
– Compare ALGOSAVE stressed probability of default correlation to in-house or CDS correlation and save capital and benefit from less pro-cyclical capital requirement.
- Fundamental Insights for corporate loan underwriting and bond investment
ALGOSAVE issuer Credit Attributes : By providing appropriate forecasts of PDs (or PIT ratings), LGDs, expected losses and correlation matrices, Algosave provides the much-needed forward looking parameters and the dynamics required to produce proper forecasts and deliver a robust pricing decision support system. Gain competitive edge with dramatic improvement in RAROC assessments.
- Corporate banker : gain competitive edge for corporate loan underwriting while protecting the P&L of your institution
ALGOSAVE Issuer probability of breach of covenant illustrated here in benign OECD macro-economic scenario and ALGOSAVE stressed macro-economic scenario @ 5 year.
– Gain competitive edge and make your V.I.P. corporate client happy with tailor-made covenants.
– A breach of covenant means an IFRS9-related immediate hit to P&L : shield the shareholders of your institution from covenant busters with a readily available watch list of potential “offenders”.
- Competitive edge for trading and derivative pricing.
ALGOSAVE issuer asset value (EV) distribution illustrated here in average, very good and stressed macro-economic.
Gain a competitive edge in pricing derivatives. Say GOOD-BYE to volatility skew and standard 60% LGD and say HELLO to powerful issuer and seniority specific Loss Given Default – LGD – term-structure (see attached graph for BP PLC. unsecured and junior subordinated LGDs)…
as well as multi-tail and real-life asset value – EV – and market capitalization distributions