Throughout the boom in complex leveraged and collateralised debt instru-ments, high yields have all but blinded investors to the significant risk. Now that the market has turned sour, and lenders are calling in the debts, investors are learning the hard way exactly how CDOs and other exotic instruments unravel.
To survive the latest credit crisis, institutions need a comprehensive understanding of all the debt they hold, and of all the related information on customers, counterparties, issuers and collateral. With a clear view of both their exposure to risk and the collateral they can offset against that risk, institutions can weather the storm and prove their viability to the market.
Enterprise Data Management (EDM) provides a rich and complex global financial data model that delivers clean, detailed and trustworthy data. This dramatically increases clarity - enabling rapid valuation of even the most complex instruments - and significantly reduces exposure to risk. With EDM delivering a clear, comprehensive and timely view of risk, institutions can confidently defend themselves against the credit crunch - and go on to improve their profitability when the market recovers.