Moody's Analytics today announced that it has acquired Commercial Mortgage Metrics, an analytical model for assessing default and recovery risk for commercial real estate, from CBRE Econometrics Advisors. Moody's Analytics now has exclusive control of product development, which will streamline plans for product improvements and integration of CMM with other Moody's Analytics risk analysis and risk management solutions. CMM was previously developed and marketed as a joint venture between the companies.
"Financial institutions are facing increasing regulatory and market demands to quantify their CRE risk," said Jodi Alperstein, managing director of product management and marketing at Moody's Analytics, in a statement. "We are strongly committed to further improving CMM to meet customer needs and to integrating CMM with our other risk management solutions to give customers a more robust and accurate view of their overall risk profile."
CMM quantifies the probability of default and loss given default for multi-family, retail, industrial, office and hotel properties, allowing financial institutions and other market participants to screen loans, detect credit deterioration, and price for credit risk.
Moody's Analytics has already integrated CMM with RiskAnalyst, its enterprise-wide credit risk management solution. RiskAnalyst simplifies and standardizes the way firms collect, analyze and store credit data for commercial loans and provides a platform to build and deploy internal models for measuring counterparty risk.