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Use Cases
Alpha Generation | Risk Management
Specific examples of how data science and quantitative analytics are used to identify smarter investment opportunities and manage risk.
A thermostat can predict a CMBS default.
We employ machine learning/AI and financial engineering to forecast underlying CMBS default rates. By analyzing building energy efficiency metrics (parametric modeling), we can study changes in net operating income (NOI) and debt service coverage ratios (DSCR) to evaluate bond pricing and collateral cash flow volatility.
A City Council Agenda can predict an up-zoning years in advance.
By using Natural Language Processing (NLP), machine learning/AI, and cognitive analytics, we can predict the success (or failure) of a proposed zoning ordinance. We can use these analytics to identify target acquisition (disposition) opportunities in advance of market appreciation (or depreciation).
A pit bull can predict property trends.
Using alternative data and machine learning/AI we are able forecast property trends. Specific demographic attributes (such as dog breed) can be used to analyze market metrics and invest accordingly.
A future storm can damage a building.
Through alternative data (weather analytics) and machine learning/AI we build risk models. We use climate data to hedge net operating income (NOI) loss and insure against physical property damage.