- Reality-based means we analyze assets in the context of the world today and in relation to our forward-looking macroeconomic and market views. While we study and learn from the past, we do not assume the world will behave as it has before and we do not rely on backward-looking, statistical analyses.
- Our process is credit intensive and focuses on uncovering risks not apparent from traditional analysis.
- Our forward-looking view guides our expectations of future consumer and corporate behavior, which in turn drives our asset performance projections.
- Our unmatched understanding of legal and structural issues allows us to calibrate our macro-driven performance expectations to asset-specific cashflows.
- Multivariate stresses are applied around our forecasts to capture alternate future states of the world.
- The Result is a robust fundamental and quantitative analysis which is:
- Up-to-date
- Consistent with current realistic paths
- Internally Compatible
- Open & Transparent
- Easily articulated, while also granular
