credit risk management solutions for the global energy markets
click one of the links below to read more about measuring PFE with energycredit.
Typical questions that can be answered by PFE measurements are:
- What is the maximum exposure for counterparty ABC for a user defined time period (with 95% confidence or user defined confidence interval)?
- When will the maximum exposure occur for counterparty ABC over the lifetime of the existing transactions?
- How will the exposure change if we put an ISDA agreement in place? Or a Master Netting Agreement in place?
- How will a new deal affect the overall exposure?
- Will I potentially have to post margin to a Counterparty?
Netting aggregator
Accurate netting by legal contract is applied to the PFE calculation. energycredit Analytics also provides the versatility to view PFE under a number of other scenarios. The netting aggregator aggregates PFE using three netting methods: netting by existing legal contract, netting all exposure, and netting none. “Netting by existing legal contract” provides a picture of PFE with the current netting rules for the counterparty. “Netting all” shows the effect of adding a master netting agreement (MNA), and “netting none” shows the failure of existing netting agreements.
