Adaptive Alpha is introducing a new approach to risk to address growing concerns about the limitations of traditional risk methods.

Our development projects focus on applying our approach as our clients' needs dictate. In solving their problems, we develop practical solutions that enhance their ability to manage risk to increase profitability.

Our risk strategies are designed to determine which actions will drive optimal outcomes. The Adaptive Alpha approach learns scientifically from experiential data and then applies that knowledge to current decision-making activity and execution processes. The forward-looking perspective and actionable nature of Adaptive Alpha's risk strategies extend our clients' competitive advantage through the execution of one decision into the next.

Representative development work includes:

Counterparty risk analytic for a major global custodian. Adaptive Alpha’s counterparty risk analytic platform was designed to address investor anxiety about the pricing of counterparty credit risk, counterparty default risk, transparency, and increasing friction costs (transaction financing, commissions, insurance, advisory, management and intermediary fees) as a proportion of profitability.

The platform provides real-time, comparative counterparty competitiveness information on a trade by trade basis across all asset classes, pre-trade cost estimates, and drill-down information for traders to: 1) compare credit risk pricing; 2) prospectively select counterparties on the basis of a) reliability in meeting contractual obligations and b) cost competitiveness, on a transaction by transaction basis; and 3) negotiate competitive financing terms.

Credit sentiment indicators for a global information services company. Adaptive Alpha’s credit sentiment analytics are used to evaluate dynamic changes in credit liquidity, deal volume, terms and conditions across industry, geography, and customized market segments. The indicators were designed to 1) enhance decision-making of credit professionals through all stages of loan syndication and 2) to aid traders in finding best execution venues, analyzing real-time competitiveness factors including liquidity supply and demand, execution speed, transaction volume and price integrity.

The credit sentiment indicators aid traders in finding best execution venues, real-time analysis of competitiveness factors including liquidity supply & demand, execution speed, transaction volume & price integrity.