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

MEAG and BondIT, a provider of next-gen fixed income technology, are collaborating 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 leverages Machine Learning and Explainable-AI (XAI) to predict changes in the credit risk profiles and rating transition probabilities of nearly 3,000 corporate issuers worldwide.
“Working with BondIT is another important step in driving technological progress across our organization. We aim to continuously increase the quality and efficiency of our investment process, and technology plays a crucial part 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, its transparent non-biased AI approach and the easy implementation to get an additional opinion to the inhouse model.”
MEAG’s Global Credit Research Teams in Munich and New York will use Scorable to improve their decisions in analyzing their credit exposures through today’s volatile market environments. Recognizing and understanding market dynamics early on is an important value driver.
“Better data drives better performance but translating the ever-growing amount of raw data into actionable insights can put a huge strain on resources. This is where our Explainable-AI can offer real added value in 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 to supporting them in optimizing their credit risk management”.
Scorable Credit Analytics is part of BondIT’s fixed income technology solutions portfolio. As a highly client-led organization, BondIT collaborates closely with its partners to help them leverage and analyze their data.
Scorable analyzes more than 250 data variables daily and translates raw data from a vast array of sources, including financial statements, fundamentals and capital market data into actionable insights for investors, helping them identify investment opportunities and risks ahead of the market. Unlike obscure black-box solutions, Scorable’s XAI approach supports transparency and allows users to understand the drivers behind the risk assessments. Scorable’s advanced technology and models are continuously enhanced and updated to reflect the latest market developments.