Systemic Risk Research Consortium Launched to Address Risk in the Financial Markets
July 24 2012 - 11:46AM
Business Wire
Moody’s and State Street Global Markets have joined with Andrew
Lo, Charles T. and Susan E. Harris Professor at the MIT Sloan
School of Management and Director of MIT's Laboratory for Financial
Engineering today to announce the formation of a consortium to
provide independent, quantitative research, insight, and leadership
on systemic risk in the global financial markets.
Today’s financial markets continue to be affected by the
significant market volatility that began in 2008, due mostly to a
small number of macroeconomic factors and increasingly
interconnected markets, which exposes investors to increased risk.
The consortium will seek to foster collaboration between academic
and industry research communities to research the interrelatedness
of markets and potential sources of systemic risk. The consortium
has attracted interest from an array of academic, industry and
regulatory researchers and two conferences have been held at which
institutional investors, academics and industry experts presented
new research and discussed how to better quantify drivers of
systemic risk. A third conference is planned for later this
year.
“Understanding the interconnectedness of markets has become an
increasingly critical topic for investors and academics alike,”
said Andrew Lo, founding member of the Consortium’s Academic
Advisory Board. “My collaboration with the Consortium members will
provide additional resources from various areas of expertise aimed
at developing new approaches that institutional investors require
to better manage risk.”
"Global markets continue to become increasingly interconnected,
which carries both benefits and risks," said Roger M. Stein,
Managing Director for Research and Academic Relations globally at
Moody’s and President of the Consortium. "The Consortium, with its
broad cross section of researchers and its multidisciplinary focus
provides a unique forum at the crossroads of academia and financial
services for developing new methods to provide greater transparency
into the nature of systemic risk."
“The market fluctuations of the last several years have led to
increased concern among our institutional client base in the
measurement and analysis of risk,” said Jessica Donohue, senior
managing director at State Street Global Markets and the Consortium
for Systemic Risk Analytics (CSRA) founding board member. “This
consortium will help bring quantitative research insights and risk
management tools to an even broader academic audience with the goal
of creating a collective forum to examine this complex and
important issue.”
About Moody’s Corporation
Moody's is an essential component of the global capital markets,
providing credit ratings, research, tools and analysis that
contribute to transparent and integrated financial markets. Moody's
Corporation (NYSE: MCO) is the parent company of Moody's Investors
Service, which provides credit ratings and research covering debt
instruments and securities, and Moody's Analytics, which offers
leading-edge software, advisory services and research for credit
and economic analysis and financial risk management. The
Corporation, which reported revenue of $2.3 billion in 2011,
employs approximately 6,400 people worldwide and maintains a
presence in 28 countries. Further information is available at
www.moodys.com.
About State Street Corporation
State Street Corporation (NYSE: STT) is one of the world's
leading providers of financial services to institutional investors
including investment servicing, investment management and
investment research and trading. With $22.4 trillion in assets
under custody and administration and $1.9 trillion* in assets under
management at June 30, 2012, State Street operates in 29 countries
and more than 100 geographic markets. For more information, visit
State Street’s web site at www.statestreet.com.
*This AUM includes the assets of the SPDR Gold Trust (approx.
$65.7 billion as of June 30, 2012), for which State Street Global
Markets, LLC, an affiliate of State Street Global Advisors, serves
as the marketing agent.
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