MEAG adopts BondIT’s Explainable-AI Technology to accelerate digitization of credit risk management
Munich/Berlin/Israel, 14 December 2021 – MEAG and BondIT, a provider of next-gen fixed income technology, are collaborating to digitize MEAG’s credit risk workflows. The asset manager will use BondIT’s Scorable Credit Analytics to improve its credit research process. Scorable leverages Machine Learning and Explainable-AI (XAI) to predict changes in the credit risk profiles and rating transition probabilities of more than 3,000 corporate and financial issuers worldwide.
“Working with BondIT is another important step in driving technological progress across our organization. We aim to continuously increase the quality and efficiency of our investment process, and technology plays a crucial part in this”, says Prashant Sharma, CIO Public Markets at MEAG.
Heiderose Briem, Head of Business Management: “We opted for Scorable because of its innovative technology, its transparent non-biased AI approach and the easy implementation to get an additional opinion to the inhouse model.”
MEAG’s Global Credit Research Teams in Munich and New York will use Scorable to broaden their research capacity and to improve their decisions in analyzing and managing their credit exposures through today’s volatile market environments. Recognizing and understanding market dynamics early on is crucial for MEAG’s investment performance.
“Better data drives better performance but translating the ever-growing amount of raw data into actionable insights can put a huge strain on resources. This is where our Explainable-AI can offer real added value in supporting analysts and asset managers in their investment decision-making”, says Oliver Kroll, Co-Founder Scorable & BondIT Head of Europe. “We look forward to working with MEAG and to helping them optimize their credit risk management”.
Scorable Credit Analytics is part of BondIT’s fixed income technology solutions portfolio. As a highly client-led organization, BondIT collaborates closely with its partners to help them leverage and analyze their data.
Scorable analyzes more than 250 data variables daily and translates raw data from a vast array of sources, including financial statements, fundamentals and capital market data into actionable insights for investors, helping them identify investment opportunities and risks ahead of the market. Unlike obscure black-box solutions, Scorable’s XAI approach supports transparency and allows users to understand the drivers behind the risk assessments. Scorable’s advanced technology and models are continuously enhanced and updated to reflect the latest market developments.
About BondIT
BondIT provides next generation front office investment technology. We combine Data Science, Explainable-AI (XAI) and Advanced Technologies with Fixed Income investment know-how to improve the performance, accuracy and efficiency of our clients’ investment processes and businesses. Our technology enables clients to efficiently build, analyze and rebalance investment portfolios, and achieve within minutes what previously took hours or days. Thanks to BondIT’s predictive credit analytics, investors can anticipate changes in corporate credit risk and capitalise on investment opportunities ahead of the market. The platform is highly flexible, being data agnostic and API or cloud based, and allows for the seamless onboarding of internal models as well as downstream connectivity to existing portfolio management and trading systems. BondIT is privately owned and paving the way for financial institutions of all sizes to integrate the power of greater technology in their investment processes. For more information, please visit www.bonditglobal.com.
About MEAG
MEAG is the asset manager of Munich Re and ERGO. With offices in Europe, Asia and North America, it also offers its extensive know-how to institutional investors and private clients from outside Munich Re Group. MEAG currently manages assets to the value of around €339 billion, €65 billion of which for institutional investors and private clients from outside the company group.