CreditSpectrum is a true financial engineering firm. Our flagship product is dynamic credit ratings.
SEC-designated (NRSRO) credit ratings are naturally “stale.” Credit-sensitive data are haphazardly reflected in the rating, which can lead to both underestimation and overstatement of payment risk. The stale rating problem is at the heart of the Credit Crisis of 2007 and the Asian Crisis. CreditSpectrum was founded in 2000 to offer the market a transparent, unbiased, user-friendly alternative to stale ratings.
CreditSpectrum ratings are based on a logical sequencing of option-adjusted contractual cash flows. By executing payment rules and procedures transparently,CreditSpectrum ratings identify and capture intrinsic security value in real time. Ratings are assigned according to the public CreditSpectrum credit rating scale with numerical notches, so users can gauge how close the rating is to a “cliff.” All results can be dissected, analyzed, critiqued and improved with additional data.
CreditSpectrum ratings were designed to eliminate arbitrary boundaries that favor one or the other side of the market, so as to create a win-win for both the buy side and the sell side. Producers get to keep some of the value they create through affordable funding, which helps the real economy. Investors get an early warning signal on security performance trends, which conserves the public trust.
CreditSpectrum delivers credit metrics via multiple channels. You can:
- View our rating/valuations
- License (and customize) our analytics
- Outsource your credit process-supplement your metrics with ours