What Is Moody's Analytics?
Moody’s Analytics is a subsidiary of Moody’s Corporation that offers tools, solutions, and best practices for measuring and managing risk. It provides data analysis and financial intelligence products to helpclients navigate and respond to an evolving marketplace.
Key Takeaways
- Moody's Analytics is a top-tier analysis group, offering exceptional coverage of credit ratings, world events, and worldwide risk factors.
- It was spun off from Moody's Investor Services in 2008.
- The group has historically been active in acquisitions, broadening its knowledge and talent base to offer more in-depth advice and solutions.
- It also has a range of services, from data and analysis to regulatory and accounting consulting
- Although Moody's offers great tools and solutions, their intelligence should be used as one of the many tools in an investor's toolkit and not the single deciding factor behind investment decisions.
Understanding Moody's Analytics
Moody’s Analytics helps organizations and professionals across industries understand the complexities of modern-day business and capitalize on market developments around the world. Its clients include capital markets participants as well as finance, accounting, compliance, and risk management professionals. The company aims to help risk professionals make informed decisions and build successful strategies.
Its areas of expertise include credit analysis, economic forecasting, risk management, regulatory compliance, and training.
The companyemploys subject matter experts who provide industry expertise and insight and have broad experience in credit analysis, economic research, and risk management.
History of Moody's Analytics
Moody’s Analytics started as a commercial distributor of ratings, content, and research from Moody’s Investors Service. While it still serves in that capacity, Moody's Analyticshas broadened its offerings to include more financial risk solutions.
It became an independent entity from Moody’s Investors Service in 2008, andthe company has since grown to be a global provider through solution innovation and strategic acquisitions.
In November 2023, Moody's credit rating agency downgraded the U.S. economic outlook to "negative" from "stable," citing growing fiscal deficits.
Solutions Offered by Moody's Analytics
- Asset and liability management (ALM): integrates enterprise ALM, liquidity risk management, funds transfer pricing, and regulatory reporting capabilities into an enterprise platform. Although Moody's Analytics split from Moody's Investors Service, the group still maintains a strong foothold in these services
- Credit origination: end-to-end solutions to help lenders make more profitable loans faster
- Data: comprehensive datasets and data management tools including data visualization
- Economic: global economic data, forecasts, andanalyses. Moody's is known for this solution more than the others, as they offer some of the best economic data outside of government agencies and bulge-bracket banks
- Insurance: stochastic models, software, and services
- Investments & Pensions: scenario-based asset-liability modeling, investment design, and risk management solutions
- Portfolio Management: research, data, models, and multi-asset class credit risk tools
- Regulatory & Accounting: addresses global regulations and accounting frameworks for the measurement and reporting of capital impacts.
- Structured Finance: market insight through research, data, and analytics
- Learning Solutions and Certifications: global financial risk management understanding and proficiency
Many investors, institutional and private, use Moody's to strengthen their understanding of the markets and the possible direction of the positions they hold. However, Moody's functions like any other analytics group, and should be considered as a tool to use in one's analysis, not the deciding factor driving investment decisions.
Who Are the Main Competitors of Moody’s Analytics
Moody's Analytics competitors include Elevate, Oportun, and Standard & Poor's. According to Comparably, Moody's ranks first among its competitors in product quality and third overall.
How Does Moody’s Analytics Make Money?
Like other data analytics providers, Moody's Analytics earns revenue from selling its services, software, and data products.
How Accurate Is Moody’s Analytics?
No analytics company can be 100% accurate, but Moody's Analytics has won various industry awards praising its accuracy. These include the Consensus Economics Forecast Accuracy Award, the Crystal Ball Award, and the Analytics Innovation Award.
What Careers Are Available at Moody’s Analytics?
Careers at Moody's Analytics include data analysis, research, quantitative research, outreach and engagement, business analysis, and methodology. Other jobs are available for economists and financial engineers.
The Bottom Line
Spun off from Moody's Investor Services in 2008, Moody's Analytics is an analytics group, offering coverage of credit ratings, world events, and worldwide risk factors. The group has historically been active in acquisitions, and it has a range of services from data and analysis to regulatory and accounting consulting. However, it is just a tool, and should be used as one of the many tools in an investor's toolkit, and not the single deciding factor behind any investment decisions.
