Dynamic Curves

Individual factors are converted to score outputs using curves. The benchmarks for a specific firm are dependent on their primary strategies.

For example, a Trading Firm's primary strategies are categorized as Delta Neutral, Directional, and Lending. Strategies are weighted according to asset exposure.

Credora calculates a weighted average asset exposure as an input for defining the benchmarks for evaluation. For example, for a given portfolio leverage the curve for a 100% Delta Neutral firm outputs a different point total than the curve for a 100% Directional firm.