Credit risk

Meag adopts BondIT’s Explainable-AI technology for credit risk management

MEAG and BondIT, a next-generation bond technology provider, are working together to further digitize MEAG’s credit risk workflows.

The asset manager will use BondIT’s Scorable Credit Analytics to improve its credit research process. Scorable uses machine learning and explainable AI (XAI) to predict changes in credit risk profiles and rating transition probabilities for nearly 3,000 corporate issuers around the world.

“Working with BondIT is another important step in driving technological advancement within our organization. We aim to continuously increase the quality and efficiency of our investment process, and technology plays a crucial role in this, ”says Prashant Sharma, CIO Public Markets at MEAG.

Heiderose Briem, Head of Business Management: “We opted for Scorable because of its innovative technology, transparent and unbiased AI approach and ease of implementation to gain additional insight on the internal model.

MEAG’s global credit research teams in Munich and New York will use Scorable to improve their credit exposure analysis decisions in today’s volatile market environments. Recognizing and understanding market dynamics early on is an important value factor.

“Better data leads to better performance, but translating the ever-increasing amount of raw data into actionable information can be a strain on resources. This is where our Explainable-AI can offer real added value by supporting analysts and asset managers in their investment decision making ”, says Dr. David Curtis, Head of Global Client Business for BondIT and Scorable . “We look forward to working with MEAG and supporting them in optimizing their credit risk management”.

Scorable Credit Analytics is part of BondIT’s fixed income technology solutions portfolio. As a highly customer-driven organization, BondIT works closely with its partners to help them mine and analyze their data.

Scorable analyzes over 250 data variables daily and translates raw data from a wide range of sources, including financial statements, fundamentals, and capital market data into actionable insights for investors, helping them identify investment opportunities and risks before the market. Unlike obscure black box solutions, Scorable’s XAI approach supports transparency and enables users to understand the drivers behind risk assessments. The advanced technology and models of Scorable are continuously improved and updated to reflect the latest developments in the market.