Risk Integrated, a New York-based consulting and technology firm focusing on risk management for specialized finance, has added an equity analysis module to its specialized finance system (SFS) for commercial real estate (CRE).
The addition offers property investors and portfolio and asset managers the ability to analyze debt and equity investments in a single coherent framework. The new module is designed to address investor demand for transparency at a time when lenders and asset mangers are looking to stabilize investor confidence in CRE assets, Risk Integrated says. In addition, the module will provide banks with the framework to meet Basel II Advanced compliance for entire portfolios or for individual deals.
As the effects of the current market crisis permeate into the CRE sector, investors are demanding better understanding of the risk exposures and market stresses on their portfolios. Risk Integrated explains that its equity analysis module enables those structuring CRE deals to address investors' concerns over equity exposures on any deal or portfolio.
The new analysis tools provide a consolidated portfolio view of these exposures, as well as the ability to drill down into individual assets – ensuring volatile deals can be restructured if necessary. The enhancement of the SFS will bring clarity to the stresses on deal values, at a time when mangers, board members, regulators and investors all need reassurance as to the quality of the assets on balance sheets.
Source: Risk Integrated
