Moody's Analytics, a provider of risk management solutions, says it has acquired full ownership of Commercial Mortgage Metrics (CMM), an analytical model for assessing default and recovery risk for commercial real estate (CRE), from CBRE Econometrics Advisors.
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 other Moody's Analytics risk analysis and risk management solutions. CMM was previously developed and marketed as a joint venture between the companies.
CMM is a tool that quantifies the probability of default (PD) and loss given default (LGD) for multifamily, retail, industrial, office and hotel properties, allowing financial institutions and other market participants to screen loans, detect credit deterioration, and price for credit risk.
Moody's Analytics has already integrated CMM with RiskAnalyst, its enterprise-wide credit risk management solution. 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.
SOURCE: Moody's Analytics