Moody's Analytics, the risk management and research arm of New York-based Moody's Corporation, said Wednesday that it has acquired full ownership of[IMAGE]Commercial Mortgage Metrics (CMM) from CBRE Econometrics Advisors. CCM is an analytical model for assessing default and recovery risk for commercial real estate (CRE).
Moody's Analytics now has exclusive control of product development, which the company says will streamline plans for further product improvements and integration of CMM with its other risk analysis and risk management[COLUMN_BREAK]
solutions. CMM was previously developed and marketed as a joint venture between the two companies.
""Financial institutions are facing increasing regulatory and market demands to quantify their CRE risk,"" said Jodi Alperstein, managing director of product management and marketing at Moody's Analytics. ""We are strongly committed to further improving CMM to meet customer needs and to integrating CMM with our other risk management solutions to give customers a more robust and accurate view of their overall risk profile.""
CMM quantifies the probability of default (PD) and loss given default (LGD) for multi-family, retail, industrial, office, and hotel properties. Moody's Analytics says the analysis the system provides allows financial institutions and other market participants to quickly screen loans, detect credit deterioration, and accurately and consistently price for credit risk.
Moody's Analytics has already integrated CMM with RiskAnalyst, its enterprise-wide credit risk management solution. According to the company, RiskAnalyst simplifies and standardizes the way firms collect, analyze, and store credit data for commercial loans and provides a platform to build and deploy internal models for measuring counterparty risk.