Custom Modeling and Tuning
At AD&Co, we create prepayment and default models to reflect the performance of virtually any portfolio of holdings. We also evaluate internal prepayment and default models to provide recommendations on how to improve forecasting performance.
Our consultants, econometricians and systems staff have a long history of modeling and implementing systems for our broad range of clients. We rigorously test and study loan performance data provided by our clients and use sophisticated econometric techniques to construct our custom models.
Validation ensures that internal models and analytics provide consistent and replicable results over varying economic conditions and time. While we have performed model validation informally since our inception, we have formalized our approach to reflect the heightened regulatory and industry awareness of model risk and model validation.