Criat

🌟 Exciting Partnership Announcement! 🌟 At Criat, we are delighted to announce our new strategic partnership with FactSet! This partnership marks a significant milestone for us and FactSet, as we work with FactSet to bring our leading-edge credit analytics to #fixedincome managers around the world. Together, we are committed to delivering exceptional value to clients, as we reach new markets and meet the evolving needs of our clients. We are a pioneering global #creditanalytics provider, with our market-leading Deep Credit Analytics technology. We tailor comprehensive, forward-looking and high-frequency credit analytics solutions for large institutions around the world, including international organizations, government departments and banks. FactSet creates flexible, open data and software solutions for 8000+ global clients, providing instant access to financial data and analytics that investors use to make crucial decisions. Stay tuned for more updates as we embark on this exciting journey together! 🚀 #Partnership #Innovation #Technology #BusinessGrowth #financialtechnology #investmentmanagement #creditrisk #creditanalytics

🌟 Exciting Partnership Announcement! 🌟 At Criat, we are delighted to announce our new strategic partnership with FactSet! This partnership marks a significant milestone for us and FactSet, as we work with FactSet to bring our leading-edge credit analytics to #fixedincome managers around the world. Together, we are committed to delivering exceptional value to clients, as we reach new markets and meet the evolving needs of our clients. We are a pioneering global #creditanalytics provider, with our market-leading Deep Credit Analytics technology. We tailor comprehensive, forward-looking and high-frequency credit analytics solutions for large institutions around the world, including international organizations, government departments and banks. FactSet creates flexible, open data and software solutions for 8000+ global clients, providing instant access to financial data and analytics that investors use to make crucial decisions. Stay tuned for more updates as we embark on this exciting journey together! 🚀 #Partnership #Innovation #Technology #BusinessGrowth #financialtechnology #investmentmanagement #creditrisk #creditanalytics

👀 Find out about the credit health of all listed and unlisted banks around the world (even not rated by major agencies ⁉ ) After the collapse and acquisition of Credit Suisse, investors have become more cautious about the health of other banks, especially the systemically important banks. The only unlisted bank among the world's 29 systemically important banks, Groupe BPCE, has not been rated by major agencies due to the lack of publicly available market information, which undoubtedly increases the difficulty for market investors to assess its risk status. 🌟 Criat's credit assessment covers the entire banking sector🌟 , providing investors with a more comprehensive perspective to better understand the dynamics and development of the European and even the global banking industry. We conducted an in-depth analysis of Europe's systemically important banks, to help the public better understand the risk evolvement of these banks since the collapse of Credit Suisse. According to the 🌟 Criat default probability (PD) 🌟 , we have created a risk ranking of the banks, with higher rankings indicating greater risks. Please note Credit Suisse and UniCredit are not included in the list of global systemically important banks in November 2023 or the subsequent rankings here. By analyzing the changes in risk ranking since the collapse of Credit Suisse, we have drawn the following observations: ·      Credit Suisse was at the top of the risk rankings from October 2022 (5 months before its collapse) until its collapse. ·      The top four banks with the highest risk ranking have not changed from last year, currently being Société Générale, Crédit Agricole, Deutsche Bank, and BNP Paribas. ·      The risk ranking of Groupe BPCE has risen sharply. It was the 3rd safest bank last March, but now it has moved to the 5th most dangerous. ·      At present, all of France's systemically important banks are in the top five of the risk list, mainly due to the unexpected increase in France's fiscal deficit since 2023, as well as the weakness in domestic demand and economic recovery, leading to an overall decline in fiscal strength. The European banking industry is facing significant challenges and transformations after a series of risk events. Although some banks have shown a certain degree of resilience, the development of the French banking industry is still full of uncertainty. Financial Times Reuters The Wall Street Journal Bloomberg #financialtechnology #innovation #investmentmanagement #banking #creditrisk #creditsuisse

👀 Where is the Australian credit bond market heading in the next year❓ So far this year, the Bloomberg AusBond Credit 0+ Yr Index, a key indicator of the market’s overall performance, is up 3.88% (and 7.32% over the past year), demonstrating the market’s strong performance. 🔍 Criat has conducted a comprehensive risk assessment of this index with our global database. As of Aug 20, the index covers 475 AUD bonds issued by 149 issuers, with a total market value of AUD 181.89 billion. The top 5 holdings are Westpac Banking Corp., Canada Pension Plan Investment Board, National Australia Bank Ltd., BNG Bank NV, and ANZ Group Holdings Ltd., with holding values exceeding AUD 700 million each. Geographically, the holdings are primarily concentrated in issuers from Australia, Canada, the Netherlands, the United States, and the United Kingdom. Based on 💡 Criat PD implied ratings💡 , overall risks are lower for holdings in the Netherlands and the United States, while those in France and Germany are relatively higher. Criat risk assessment data provides full coverage of the index holdings (excluding universities and government-related entities). This enables us to efficiently calculate the index’s Default Loss Distribution for the forthcoming 12 months based on the 1-year PD for each entity. Our analysis indicates that there is a 62.2% probability that the index will not experience any default losses over the next year, and a 99.9% probability that its default loss will not exceed 1.5% (~AUD 2.7 billion) --- indicating a favorable outlook. 📩 For more details on our products, model or data, please message us or email info@criat.io The Australian Financial Review #FinancialTechnology #APAC #fintech #Innovation #investmentmanagement

Welcome Laura Ryan from Telos Advisory to be our advisor for Criat's growth and go-to-market strategy. Criat is expanding its business to global presense. We wish more financial institutions can benefit from our new-generation credit analytics.

Criat is thrilled to announce the appointment of Laura Ryan, from Telos Advisory, as an external advisor. With over 20 years of experience in sales and client success, Laura will help us embark on the next phase of our growth strategy and optimize our GTM approach. Criat tailors comprehensive, forward-looking and high-frequency credit assessment and data analytics solutions for financial institutions around the world. We are also trusted by international organizations and regulators. As most models used now were created over 40 years ago, our proprietary new-generation Forward Intensity Model provides institutions a technological breakthrough to better manage credit risk. We are committed to refining our approach to capitalize on emerging trends and client needs. By leveraging Laura's expertise, we aim to: 1. Increase our agility in responding to market shifts and client demands 2. Expand our footprint in key global financial centers 3. Enhance our competitive edge through innovative GTM approaches 4. Improve our overall operational efficiency and resource allocation “We are confident that Laura's involvement will be a catalyst for positive change and will significantly enhance our GTM capabilities," said Miao Weimin, CEO at Criat, "Her extensive background and strategic insights will provide our team with a fresh perspective and help us navigate the next phase of our growth strategy." Our solutions have been proven effective addressing the current market challenges in a uniquely innovative, comprehensive, and client-centric manner. This strategic initiative underscores Criat's commitment to continuous improvement and our unwavering focus on delivering exceptional value to our clients in the dynamic world of finance. Criat provides forward-looking, daily updated Probability of Default (PD), which generates implied credit ratings, credit cycle indices and early warning signals (EWS) for investment and loan portfolio management. Furthermore, our model can be extended to assess PD for non-stock and non-bond issuers, as it is free from the restrictions of those older generations. In addition, we provide bespoke toolkits for automated stress testing & scenario analysis; and proxy credit spread for credit risk management and accounting purposes. 📩 For more details on our products, model or data, please message us or email info@criat.io #clientsuccess #growthstrategy #salesoptimization #gotomarket #financialtechnology #innovation #partnership #businessgrowth #apac #investmentmanagement #creditrisk

🎖 Check out Criat’s World Credit Risk Rating Medal Table🎖 The Olympics are not just a celebration of athletic competition, but also a reflection of the international economic landscape. With the conclusion of the Paris Olympics, we have complied a 🎖credit risk medal table🎖 to picture the economic strengths and future risk trends of major economies worldwide. As a leading global investment risk analysis company, Criat covers over 90,000 publicly listed firms across 130+ economies. Our daily updated PD implied ratings (PDiR) span from AAA to C, divided into 21 notches, classified into 3 grades: ·      Investment Grade (IG): AAA to BBB- ·      Speculative Grade (SG): BB+ to B- ·      Junk Grade (JG): CCC+ to C According to Criat’s analysis, the top 3 economies with the most IG companies are Greater China (4,327), Japan (3,905), and the US (3,506). This ranking matches the top three medal standings of Paris Olympics. China and US also lead with the number of listed companies, with 10,068 and 7,133 companies respectively, while Japan’s number is smaller at only 4,416. The distribution of company ratings among China, Japan, and the US shows three distinct scenarios. Chinese companies are evenly distributed between IG and SG, with few JG companies; almost all Japanese companies are concentrated in IG, with no JG companies currently; and the US has 805 JG companies, constituting 11.3% of its total, which is significant. From Criat’s assessment, despite China’s economy showing a better-than-expected recovery in the second quarter, pressure to stabilize growth and mitigate risk persist; Japan, despite being impacted by the Norinchukin and the August 5 “Black Monday”, has its overall risk profile remain healthy. Meanwhile, the US is influenced by the uncertainties around the future of its economy. Interestingly, 7 of the 10 economies listed in the table are from the APAC region, namely China, Japan, South Korea, India, Australia, Malaysia, and Thailand. This phenomenon not only highlights the importance of the APAC region in the world economy but also foretells the development potential and investment value of the APAC region. As the global economic center shifts to the east, Asia is undoubtedly set to become a significant pole in the world, offering broad markets and abundant investment opportunities to investors. Nikkei Asia The Business Times #FinancialTechnology #Innovation #investmentmanagement

Thai energy tycoon experienced a rapid credit rating downgrade over Q2 2024. In fact, Criat's PDiR for Energy Absolute Public Co. Ltd (EA) has steadily deteriorated by 8 notches in the past 12 months. Criat’s PDiR leads the changes in TRIS rating. As of May 2024, EA's PDiR was already in non-investment grade (TRIS downgraded to non-investment grade in July 2024). Our data shows that EA's YTD Probability of Default increased by close to 5000% as its share price dropped by 91%. This spike in PD is also linked to the news about EA's alleged fraud practices and its high debt/low liquidity, leaving the company at high refinancing risk. As of July 2024, EA’s PD is among the top 10% riskiest companies in Thailand’s electric utilities group. #creditrisk #investmentrisk #financialriskmanagement #portfoliomonitoring #buyside #fintech #assetmanagement #banking #insurance 

What does Norinchukin Bank’s warning of losses mean for commercial banks and the Japanese banking industry?   On 18 June 2024, Norinchukin Bank, Japan’s fifth-largest bank, announced a bond sale plan that has sparked concerns about its potential to become the next Silicon Valley Bank.   It is anticipated that with the sale of over 10 trillion Yen in US and European bonds, Norinchukin Bank’s net loss for FY2024 will surge from the previous estimation of 500 billion Yen to 1.5 trillion Yen. This amount would be nearly three times the bank’s losses during the 2008 financial crisis.   Additionally, as Norinchukin Bank is not publicly listed, its lower transparency makes it difficult for investors to accurately assess the risk, therefore exacerbating market anxiety.   Using Criat’s global data, we conducted an in-depth analysis and concluded that the overall condition of the Japanese banking sector remains sound.   The Norinchukin Bank incident is unlikely to trigger systemic risk.   Through Criat’s Credit Cycle Index, we found that compared to the risk conditions during the 2023 US banking crisis, the Japanese banking sector demonstrates strong risk resilience. Coupled with the Bank of Japan’s recent interest rate increase on 31 July, we believe that the Japanese banking sector is unlikely to repeat the 2023 US banking crisis within the next year.   Norinchukin Bank’s possibility of default is low.   Norinchukin Bank’s one-year default probability is at 10.01 basis points. However, it is the highest among the 8 Japanese banks among the top 100 global banks by asset size, warranting cautious optimism.   Implications for other commercial banks:   Analyzing the ratio of investment assets to total assets for several major Japanese banks, we found that Norinchukin Bank’s investment assets account for 54.8% of its total assets, relatively high for commercial banks. Notably, Nomura and Japan Post Bank have even higher ratios at 75.5% and 65.5%, respectively.   Although Norinchukin Bank’s default risk is low, its approach to investment is relatively aggressive. Commercial banks need to carefully manage bond allocation in investments and enhance investment risk management.   As a global leader in investment risk management, Criat is committed to providing financial institutions with comprehensive and in-depth credit analytics. We provide daily updated credit risk data with global coverage, ensuring that financial institutions can promptly respond to market changes, make informed investment decisions, and effectively mitigate potential risks. #creditrisk #investmentrisk #financialriskmanagement #portfoliomonitoring #buyside #fintech #assetmanagement #banking #insurance #norinchukinbank

The Fed’s annual stress tests show that the combined losses for US banks could amount north of USD 680bn --- over USD 144bn more than stress tests done last year. The increased vulnerability in US banks’ balance sheets is partly due to the higher-for-longer interest rate in the past year. The interest rate has pressured the asset quality of the banks' loan portfolios. Criat’s stress testing capabilities have been put to the test to look at the impact of Fed’s baseline scenarios on US-domiciled banks’ PD. Compared to their credit profiles at the end of June 2024, US-domiciled G-SIBs likely will see an increase in their probability of default (PD) over the coming few quarters. However, the median credit risk of all US banks is likely to improve from next year after marginal deterioration. #creditrisk #investmentrisk #financialriskmanagement #portfoliomonitoring #buyside #fintech #assetmanagement #banking #stresstesting