RiskDynamic

RiskDynamic, developed by RiskSpan, is a cloud-native solution specifically designed for loans and structured finance investments. According to the vendor, this platform offers data aggregation, analytics, and modeling capabilities to assist investors and risk managers in effectively managing loans, securities, mortgage servicing rights, and other structured finance assets. RiskDynamic is intended for companies of various sizes, including small, medium, and large financial institutions, asset managers, hedge funds, insurance companies, and other organizations involved in loans and structured finance investments.

Key Features

Cloud-native solution: According to the vendor, RiskDynamic is a cloud-native solution that utilizes high-speed, cloud-native infrastructure to provide a highly configurable platform for integrating data, models, and analytics. The vendor claims that its scalable and flexible architecture ensures reliability in managing loans and structured finance investments.

Data and analytics scalability: RiskDynamic, as per the vendor, offers scalability for data and analytics related to loans and structured finance. Users can reportedly access normalized and reliable data for analyzing historical performance and run on-demand analytics for loans, securities, and mortgage servicing rights (MSRs). The platform also supports "tape cracking" for loan collateral with the SMART ETL tool.

Portfolio analytics and market risk: According to the vendor, RiskDynamic enables users to perform portfolio analytics and market risk analysis across a wide range of asset classes. The platform reportedly facilitates stress testing, sensitivity analysis, and Value at Risk (VaR) calculations for the entire fixed-income portfolio. The vendor claims that its advanced compute technology ensures efficient portfolio analysis and risk management.

Data aggregation and validation: RiskDynamic includes a data aggregation engine and data warehouse with next-generation validation technology, as stated by the vendor. It sources data directly from primary loan servicers and vendors, ensuring reliable and accurate data for analysis. The vendor states that the customizable data warehouse optimizes reporting and analysis, providing loan-level data, securities data, and real-time market data.

Loan analytics and pricing: According to the vendor, RiskDynamic facilitates efficient onboarding of data and accurate pricing of whole-loan portfolios. The platform reportedly offers tools and capabilities for analyzing loan performance, identifying profitable spec pools, and optimizing portfolio performance. The vendor claims that users can make informed trading decisions and effectively manage their loan portfolios using the platform's loan analytics features.

Mortgage Servicing Rights (MSR): RiskDynamic, as per the vendor, provides advanced capabilities for pricing Mortgage Servicing Rights (MSRs). Users can reportedly enhance risk management and decision-making by trading rep lines for true loan-level analytics. The vendor claims that the platform offers comprehensive MSR analytics and insights.

Climate Risk and ESG analytics: According to the vendor, RiskDynamic helps users understand their portfolio's exposure to climate risk through individual property-level analytics. It reportedly provides insights into environmental, social, and governance (ESG) factors that impact loan and structured finance investments. Users can allegedly assess and manage climate-related risks and incorporate ESG considerations into their investment strategies.

Private Label Securities (PLS) pricing: RiskDynamic enables users to price private label securities and make trading decisions within the context of their portfolio, according to the vendor. The platform reportedly streamlines the pricing process, eliminating manual work and saving time for users.

Allowance forecasting: RiskDynamic allows users to forecast allowances for credit-sensitive assets, including Available-for-Sale (AFS) securities, loans, and Held-to-Maturity (HTM) securities, as claimed by the vendor. The platform reportedly helps users comply with accounting standards such as the Current Expected Credit Loss (CECL) standard.