Macro Financial Scenarios
MA provides insurance companies, banks, endowments, pension funds and others macroeconomic and financial scenarios to drive through internal capital models for the purpose of testing asset adequacy. Any institution that needs to or wants to stress-test their balance sheets against a range of adverse deterministic scenarios will find these scenarios to be of value and complementary to the probabilistic approach now widely in use. The scenarios are generated using Macroeconomic Advisers’ model-based approach that enforces internal consistency and discipline on the scenarios, allowing users to benefit from MA’s model, intuition and experience that accrues from decades as the most respected private-sector modeling and forecasting team.
MA’s MacroFinancial Scenarios Service provides 10 long-run macroeconomic and financial scenarios against which companies with long-lived liabilities can stress-test their balance sheets in support of both regulatory and internal risk-management objectives.
MA also offers the MacroPrudential Scenarios Service, a product that helps SIFI’s and other financial institutions test their balance sheets against the Fed’s Supervisory Baseline Scenario and the Supervisory Stress Scenarios as well as alternative “most-likely” and “stress” scenarios.
Clients receive a description of each of the scenarios including a write-up, comparative charts, and tables and Excel spreadsheets with economic variables that are consistent with the scenarios. Customization to develop additional alternative scenarios is available.