R&R Consulting is a pioneer in developing a data-intensive, self-consistent framework for modern credit analysis. Since 2000, we have provided rigorous, reliable, real-time measures of value and risk, for both fundamental and re-engineered credits. We work hard to build the trust and loyalty of our clients through honest discourse and full disclosure of our methods.
We invite you to scroll through the complex and varied milestones of our first decade:
Our Capabilities- Valuing complex securities
- Designing and building dynamic risk measurement systems
- Designing stable, capital-efficient transactions
- Corporate bond default analysis for enterprises of all sizes
- Consumer credit scoring and risk-based pricing
- Third-party validation of quantitative credit models and their outputs
- Skill-assessment and skill-building in credit portfolio risk management
- Strategic advisory services on businesses at all levels of in the value chain of the credit-granting process
Clients for R&R PrecisionMetrics® Analytics
- U.S. and foreign investors have licensed the R&R Waterfall Editor(C) (2009-2011)
- Brazilian credit scoring platform retained R&R to develop a paperless mortgage securitization operational interface (2009)
- Credit model for micro-finance rating agencies and concessionary lenders to rate CDOs of MFI loans (2006-2010)
- Credit scoring models custom-built for U.S. small and medium-sized leasing companies (2005)
- Financing decision tool for an emerging market primary mortgage lender that simulated investment risks associated with a new residential mortgage originator in a liberalizing Eastern European economy (2003)
Credit Rating Assignments
- Bespoke content creation on credit rating agency governance topics (2010 and 2011)
- Independent valuation of cash/synthetic RMBS and RMBS CDO transactions (a large number of assignments from 2007 through the present)
- Transaction consultancy for a securitizing Kuwaiti bank (2007 and 2010)
- Structuring advisory services for securitizing the business assets of SMEs (multiple assignments from 2006 through the present)
- Third-party validation and summary credit statistics of a U.S. emerging market guarantor’s portfolio history performed on behalf of an African development bank (2008)
- Custom-design structured financing for a global lender to the microfinance industry. R&R provided the modeling support; managed the rating agency dialogue; and explained the transaction to investors (multiple assignments from 2006 through the present)
- Strategic analysis of the future of the credit markets (2008) for a large U.S. credit scoring company
- Arm’s-length valuation on behalf of investors of the short strategy of a “Big Short” before they committed funds to the investment (2007)
- First pan-Russian bond default study on the SME sector-multiple assignments related to bond development in Russia (2007)
- Design and execution of a securitization platform for medium-sized Russian lending banks (2006)
- Construction of the first static pool analysis for micro-finance institutions in Asia, Latin America (2006)
- Independent valuation of the assets in portfolio of a busted credit card master trust (2006)
- Audit of state-of-the-art Merton Default decision support tools for a global rating agency (2003)
- Corporate bond default study for Brazil’s largest private bank-developed the internal models for risk-based loan pricing in consumer and SME sectors (2005)
- Corporate bond default study for large Brazilian bank-developed the internal models for risk-based loan pricing in consumer and SME sectors: R&R worked with bank staff to build the models and provided training enabling the bank to maintain and extend the models’ usefulness (2004)
- Corporate bond default study for Brazil’s largest public bank-designed and built quantitative credit risk models to use in global and dynamic value at risk (VAR) analysis in the following core business lines: consumer loans (revolving and installment); corporate lending in four market segments (segregated by annual revenues): micro – up to R$0.5 MM; small – R$0.5 MM to R$8 MM; middle – R$8 MM to R$100 MM; large – more than R$100 MM; agricultural lending (agricultural, livestock and hybrid); financial institutions. KS results ranged from 0.35 to 0.69 (2003). NB: Sylvain Raynes in the late 1980s built the original credit scoring system for Citibank’s global credit card business unit
Structuring Assignments
Information available on request
Custom Corporate Training Assignments
- Licensing manual/exams, for regulating Hong Kong’s credit rating agency
- Credit Rating Agency processes, for a European bank regulator
- Mortgage Capital, CDOs, Securitization for a Taiwan consortium
- Structured finance, for a multilateral development bank
- NASBA-qualifying course for a Big Four accounting firm
- Securitization, for the first Sub-Saharan RMBS transaction team
- Securitization, for senior members of an African stock exchange
- Securitization, for an East European Central Bank
- Branded structured finance training, for the U.S. securitization lobby group
- Advanced securitization, for a federal housing finance agency in Mexico
- Securitization, for a global bank in Mexico
- Securitization, for key officers of multiple multilateral development banks
- Securitization, for several U.S. national financial bank regulatory institutions
- Securitization, for a financial guarantor
- Securitization in emerging markets, for a European development bank
R&R’s original business concept was to provide real-time secondary market rating-equivalents on ABS, RMBs and their derivatives. But, with no clients for it until 2006, we began teaching structured finance and promoting system standardization. The Credit Crisis has to some extent validated R&R’s original concept: dynamic risk measurement via the ABSTRAK® would have put an early end to the bubble before it became a systemic problem.
As we enter our second decade of operations, R&R’s mission is to enable borrowers and lenders to speak a common language of value, with better tools, clearer benchmarks of information quality, and performance standards that prevent crises through feedback.
