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Moody’s Analytics Expands Global Economic Scenarios for Stress Testing

Moody’s Analytics announced the global expansion of its Alternative Scenarios economic forecast service, which now covers 49 countries, representing more than 93% of world economic output. The economic forecasts include a baseline, or most likely outcome scenario, and six alternative economic scenarios covering both downside and upside risks.

Portfolio managers and risk professionals use scenario analysis to understand and model the impact of various economic outcomes on the performance of their portfolios, and comply with stress testing requirements for market, credit, liquidity and operational risk.

The scenarios are updated monthly and consider a range of potential outcomes from a rapid resolution of the European sovereign debt crisis to eventualities such as intensification of the sovereign debt crisis, a disorderly exit of Greece from the European Monetary Union, and increasing pressure on the euro membership of indebted peripheral countries.

Source: Marketwatch.com

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