Our specialist solutions are founded upon our research and expertise in econometric and statistical methodology. Details of a typical Acadametrics research investigation can be found here.

RISK SERVICES

Our bespoke solutions encompass the regular indexed revaluation of property portfolios, application of LGD data and modelling for lender use in risk and capital assessment, validation of risk models and the scenario loss analysis of mortgage loan portfolios.

Where lack of historic data makes the development of models problematic, such as in the estimation of probability of default through the cycle for Pillar 2 of the Capital Requirements Directive (CRD), we can build simulation models that scale and estimate probability relative to economic variables

HOUSE PRICES

The Land Registry (LR) provides details of all residential property sales transactions in England and Wales.

The FT House Price Index is the only index that uses all the LR transactions and provides a definitive measure of house price inflation. Our index data is updated and reported every month in the Weekend FT and on FT.com and is available here.

As part of the CRD, mortgage lenders must now regularly revalue the property assets within their loan portfolios, whether opting for the Standardised, Internal Ratings Based or Advanced approach. The Acadametrics House Prices series illustrated here is purpose built to facilitate regular, inexpensive, revaluation within confidence limits and to provide comprehensive and accurate house price data for planners, economists and all those whose businesses depend upon measurement of house prices. Our House Price Calculator is available for use by lenders and other clients on their own websites.

MODEL DEVELOPMENT

We work with a wide variety of financial services institutions, calling upon our unique data and past work. We focus upon practical and easy to use solutions; for example, our desktop mortgage risk assessment model can provide an instant view of a mortgage lender’s potential losses under a series of alternative macroeconomic scenarios, using only lending volumes and numbers of loans as input.