Using state of the art ALM models and portfolio optimisation tools based on Black Litterman methodology and Monte Carlo simulation helps our clients define their optimal dynamic risk levels and control framework.

Tactical asset allocation decisions are supported by an integrated suite of macro economic prediction models, market valuation tools and real-time sentiment tracking in order to arrive at a calibrated risk-return trade-off in line with the strategic framework.

Selection and monitoring of investment funds is done through a mixture of granular quantitative analysis on risk factor exposures and performance, combined with an in-depth qualitative monitoring process aligned with the quantitative profile of the fund.

A tailor-made reporting is produced to ensure full transparency and alignment with client requirements.

The shift towards UTP to Stage 2 credits requires a different mindset and organization. Over the past decade, NPL management was conducted mainly by specialised lawyers and servicers,  as the process was closely linked to bankruptcy law and related procedures.

The shift towards credits in a better stage of covenant requires an approach much more closely aligned with the debtor. Whereas liquidation usually makes sense for Bad Debts, for UTP credits (up to Stage 2) a going concern approach probably allows for more value creation (or less destruction) than default. This requires a radically different operating model for banks and investors ill-equipped to deal with providing support and guidance for SMEs in difficulty.

Companies and their sectors need to be analysed to determine the source of the issues they face, for example:

• Poor management
• Financing and capital structure
• Sector dynamics
• Service/Product management