This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Moody’s Analytics Adds The Fed’s Baseline And Stress Test Scenarios

In response to the new stress test requirements announced by the U.S. Federal Reserve on November 22, 2011, Moody’s Analytics, a leading independent provider of economic forecasting, has today announced the addition of the Fed’s baseline and stress test scenarios to its U.S. Macro Forecast Model®. The new stress test scenario, aligned with the Fed’s Supervisory Stress Scenario, provides clients with a tool to evaluate the impact a major economic shock would have on its business.

“We developed these macroeconomic scenarios in response to demand from our clients,” says Mark Zandi, Chief Economist for Moody’s Analytics. “These alternative forecast scenarios will help our clients to determine whether their balance sheets are vulnerable to a major economic shock outlined by the Fed’s Supervisory Stress Scenario. Our alternative scenarios allow clients to run many detailed indicators such as consumer credit, house prices and mortgage rates.”

Moody’s Analytics new macroeconomic scenarios address portions of the Fed’s 2012 Comprehensive Capital Analysis and Review program. Under the review, the Fed will use a Supervisory Stress Scenario to analyze all firms' capital needs to withstand such a scenario while they continue to act as a financial intermediary. According to the Fed’s press release, the Supervisory Stress Scenario is designed to represent an outcome that may occur if the U.S. economy were to experience a deep recession and also global economic contraction.

The U.S. Fed Supervisory Stress Scenario is available for customers or clients who subscribe to the U.S. Macro/Financial Forecast Database and complements Moody’s Analytics baseline and six other core alternative scenarios. In addition to national forecasts, the scenario also includes metro and state forecasts.

In response to market demand, Moody’s Analytics is also planning to replicate the new stress test scenarios for a few dozen countries beyond the U.S.

Moody’s Analytics includes alternative scenarios in all of its U.S. forecast products, including for states, metro areas and consumers. Its alternative scenarios allow risk and business managers to quickly assess outcomes based on differing assumptions about economic conditions. These alternative scenarios are updated monthly, using the latest economic data, and extend 30 years for the United States and 10 years for other nations.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG

Markets

DOW 18,080.14 +21.45 0.12%
S&P 500 2,117.69 +4.76 0.23%
NASDAQ 5,092.0850 +36.0220 0.71%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs