CounterpartyIQ® is a web-based platform that captures, analyzes, and rates counterparty exposures, helping treasury teams to understand and actively manage their organizations’ counterparty risk. Leveraging the breadth and depth of Capital Advisors Group’s credit research capabilities, CounterpartyIQ® helps you to identify, aggregate, analyze, and manage counterparty risk.
CounterpartyIQ® I
Credit Analysis & Monitoring
CounterpartyIQ® I is an easily implemented, web-based solution which provides treasury teams access to Capital Advisors Group’s independent credit research to help them understand, analyze, compare and contrast, and track individual counterparty exposures:
- Fundamental Research. CounterpartyIQ® I provides updated key financial, operational and qualitative variables on counterparties and offers credit assessment using Capital Advisors Group’s proprietary credit model.
- Market Signals. CounterpartyIQ® I incorporates equity, debt, and derivatives trading information and third party risk metrics to uncover developing issues at counterparties.
- Measurement and Alerts. CounterpartyIQ® I uses a unique scoring system to allow standardized risk measurement, watch-list construction, peer group comparison, benchmarking, tolerance setting and customized alerts.
Benefits
CounterpartyIQ® I helps you to:
- Have a deeper understanding of a counterparty’s credit risk with the help of monthly research database updates from Capital Advisors Group’s experienced credit team.
- Build a “buy list” of counterparties for trading or deposit relationships from the proprietary scoring system derived from Capital Advisor Group’s credit model.
- Slice and dice different risk characteristics of each counterparty by drilling down into detailed credit matrices utilizing over one hundred peer-benchmarked credit factors.
- Compare and contrast counterparties using Capital Advisors Group’s proprietary ratings for peer group comparison and benchmark construction.
- View trends of specific credits and industries by tapping into the everyday credit market signals.
- Achieve peace of mind by setting risk tolerances tied to fundamental credit metrics or scores and receive alerts when a threshold is reached.
CounterpartyIQ® II
Exposure Aggregation & Attribution
CounterpartyIQ®II is an easily implemented, web-based solution which gives treasury teams the ability to capture, analyze, and manage counterparty exposures with CounterpartyIQ® I features:
- Capture. CounterpartyIQ® II enables aggregation of counterparty exposure data across all areas of the enterprise to capture the “who, what, and where” of counterparty risk.
- Analyze. With counterparty exposure and duration data, CounterpartyIQ® II generates credit scores, enhanced with risk attributions and peer group data, on an organization’s aggregated portfolio of counterparties using Level I tools.
- Manage. CounterpartyIQ® II provides a variety of risk metrics, helping users to make actionable, defensible decisions to appropriately manage counterparty risk.
Benefits
CounterpartyIQ® II helps you to:
- Receive all the benefits of Counterparty IQ® I
- Identify the specific exposures you have to counterparties, as well as where they are located within your organization’s financial relationships.
- View aggregate and look-through counterparty exposures in pooled vehicles such as money market funds.
- Understand and monitor changes in the level of aggregate risk using Capital Advisors Group’s proprietary scores.
- Develop a meaningful policy around counterparty risk and manage it to specific risk tolerances.
- Make proactive and defensible counterparty risk allocation decisions based on pre-determined tolerance to risk concentration or score levels.
- Rationalize risk-return goals and measure performance among different counterparties.
- Receive alerts when concentration in counterparty or country, sector, maturity, or other portfolio characteristics reaches pre-determined threshold.
- Generate custom reports for internal distribution.
Common Counterparty Sources
While the type and amount of counterparty exposure can vary significantly, it is pervasive throughout most enterprises. Common sources include:
- Money market funds holdings
- Deposit accounts
- Lines of credit
- Separately managed accounts
- Foreign exchange contracts
- Vendor accounts
- Customer accounts
