Moody's Analytics: Meaning, History, Solutions

What Is Moody's Analytics?

Moody’s Analytics is a subsidiary of Moody’s Corporation that offers tools, solutions, and best practices for measuring and managing risk. It provides data analysis and financial intelligence products to help clients navigate and respond to an evolving marketplace.

Understanding Moody's Analytics

Moody’s Analytics helps organizations and professionals across industries understand the complexities of modern-day business and capitalize on market developments around the world. Its clients include capital markets participants as well as finance, accounting, compliance, and risk management professionals. The company aims to help risk professionals make informed decisions and build successful strategies.

Its areas of expertise include credit analysis, economic forecasting, risk management, regulatory compliance, and training.

History of Moody's Analytics

Moody’s Analytics started as a commercial distributor of ratings, content, and research from Moody’s Investors Service. While it still serves in that capacity, Moody's Analytics?has broadened its offerings to include more financial risk solutions.

It became an independent entity from Moody’s Investors Service in 2008, and?the company has since grown to be a global provider through solution innovation and strategic acquisitions.

Solutions Offered by Moody's Analytics

• Asset and liability management (ALM): integrates enterprise ALM, liquidity risk management, funds transfer pricing, and regulatory reporting capabilities into an enterprise platform. Although Moody's Analytics split from Moody's Investors Service, the group still maintains a strong foothold in these services
• Credit origination: end-to-end solutions to help lenders make more profitable loans faster
• Data: comprehensive datasets and data management tools including data visualization
• Economic: global economic data, forecasts, and analyses. Moody's is known for this solution more than the others, as they offer some of the best economic data outside of government agencies and bulge-bracket banks
• Insurance: stochastic models, software, and services
• Investments & Pensions: scenario-based asset-liability modeling, investment design, and risk management solutions
• Portfolio Management: research, data, models, and multi-asset class credit risk tools
• Regulatory & Accounting: addresses global regulations and accounting frameworks for the measurement and reporting of capital impacts.
• Structured Finance: market insight through research, data, and analytics
• Learning Solutions and Certifications: global financial risk management understanding and proficiency

The Bottom Line

Spun off from Moody's Investor Services in 2008, Moody's Analytics is an analytics group, offering coverage of credit ratings, world events, and worldwide risk factors. The group has historically been active in acquisitions, and it has a range of services from data and analysis to regulatory and accounting consulting. However, it is just a tool, and should be used as one of the many tools in an investor's toolkit, and not the single deciding factor behind any investment decisions.