Commercial & Investment Banks

Insurance Companies

Official Institutions &
Government Agencies

Real Estate
Companies

Central Counterparties
& Exchanges

Financial Sponsors &
Investment Funds

Commercial & Investment Banks

  • Portfolio valuation and risk assessment
  • Balance sheet optimization strategies
  • Management and wind-down of distressed assets
  • Risk model validation
  • Customized risk reporting
  • Support for regulatory, accounting, legal and tax strategies

Case Studies:

  • Engaged by a "systemically important" U.S. bank to provide stress-test loss projections in support of the Federal Reserve's Supervisory Capital Adequacy Program ("SCAP"). FMA analyzed loan and securities portfolios and customized proprietary models to reflect prescribed macroeconomic scenarios.
  • Hired by French bank Société Générale to provide an independent assessment of a complex €35 bn portfolio; results were publicly disclosed and used in client’s investor presentations.

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Official Institutions & Government Agencies

  • Broad advisory support for policy-related initiatives
  • Sector stabilization strategies
  • System-wide diagnostics and stress testing
  • Distressed portfolio management
  • Multi-institutional risk reporting

Case Studies:

  • Her Majesty's Treasury (HMT) engaged FMA to provide loss projections on over £550 bn of Lloyds and RBS assets earmarked for transfer to the UK's Asset Protection Scheme. The program involved significant UK and European exposures, including large idiosyncratic assets. BlackRock submitted a final deliverable to HMT, including loss projections in four distinct macroeconomic environments, as constructed by the Bank of England.

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Central Counterparties & Exchanges

  • Contingent management services
  • Crisis-scenario stress testing
  • Liquidity risk management support
  • Custom risk reporting solutions
  • Collateral eligibility monitoring

Case Studies:

  • Engaged by major clearinghouse to liquidate a $190 billion collateral account in the wake of Lehman Brothers' bankruptcy and designed a framework for future portfolio unwinds in events of clearing member bankruptcy.
  • Retained by clearing houses, derivative product companies, and various Special Purpose Vehicles to liquidate complex portfolios in short timeframes following events of default.

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Insurance Companies

  • Balance sheet advisory
  • Asset-liability management
  • Model development and validation
  • Risk reporting and data-oriented solutions
  • Asset allocation and portfolio optimization strategies

Case Studies:

  • Hired by American International Group (AIG) to perform valuation and risk assessment across a broad set of assets, as well as various bespoke analyses as requested by client and key stakeholders.
  • Supported monoline insurer commutations and creditor negotiations by performing fundamental asset valuation and liability forecasting analysis.

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Real Estate Companies

  • Risk model design and development support
  • Portfolio valuation and risk reporting
  • Distressed portfolio management, workouts, and restructuring
  • Strategic advice

Case Studies:

  • Engaged by the National Association of Insurance Commissioners (NAIC) to perform loss estimates on commercial mortgage backed securities held by US insurers.  Analysis spanned multiple macroeconomic scenarios to inform insurer capital requirements.
  • Advised a syndicate of investors on the recapitalization of several commercial real estate special servicers.  Analysis required the development of a proprietary bottom-up special servicer revenue and expense projection model.

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Financial Sponsors & Investment Funds

  • M&A-related due diligence and valuation support
  • Leveraged buyout and other portfolio- or enterprise-level transactions
  • Strategic, structuring, or transactional advice
  • Valuation support and arbitration between General and Limited Partners

Case Studies:

  • Selected to provide strategic advice and valuation services with respect to a $20 billion diversified credit portfolio managed by a London-based asset management firm.
  • Hired by a consortium of private equity partners to analyze loan assets of a target bank in connection with a contemplated equity investment. FMA performed a risk assessment on the target bank's assets, incorporating data from a dozen different systems in a compressed timeframe.

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