March 19, 2021

Talking Risk Intelligence with AD&Co

Mike Reynolds, Single-Family VP of Credit Risk Transfer, sits down with Andrew Davidson & Co., Inc. (AD&Co) founder Andy Davidson to talk all things risk intelligence, including planting the first seed about a GSE CRT market in 2010 and connecting with Freddie Mac to launch the first GSE CRT securities transaction in 2013.

Founded in 1992, AD&Co. focuses on bringing the analytics and tools of Wall Street to the buy-side, enabling all parties to conduct business fairly. The company’s interest in GSE CRT stemmed from an obligation to making the mortgage market function better as well as from seeing a strong appetite among credit experts for more products to invest in.

 

Additional Resources

AD&Co US Mortgage High-Yield Index
AD&Co CRT Monitor
The S-Curve Blog
CRT Resource Hub
Clarity Data IntelligenceSM 

 

About Andy Davidson

Andy Davidson is a financial innovator and leader in the development of financial research and analytics. He has worked extensively on mortgage-backed securities product development, valuation and hedging. He is president of Andrew Davidson & Co., Inc., a New York firm specializing in the application of analytical tools to investment management, which he founded in 1992.

Andy was instrumental in the creation of the Freddie Mac and Fannie Mae risk-sharing transactions: STACR and CAS. These transactions allow Freddie Mac and Fannie Mae to attract private capital to bear credit risk, even as they remain in government conservatorship. Andrew is also active in other dimensions of GSE reform and has testified before the Senate Banking Committee on multiple occasions. Andrew also helped establish the Structured Finance Industry Group and served on the Executive Committee at its inception. He was also the founding co-host with IMN of the Credit-Risk Transfer Symposium.

He is co-author of the books Mortgage Valuation Models: Embedded Options, Risk and Uncertainty; Securitization: Structuring and Investment Analysis; and Mortgage-Backed Securities: Investment Analysis and Valuation Techniques. He has contributed to The Handbook of Mortgage-Backed Securities and other publications. He received an MBA in Finance at the University of Chicago and a BA in Mathematics and Physics at Harvard.

 

Disclaimer

The information presented in this recording is not an offer to sell any Freddie Mac securities. This recording may contain forward-looking statements. Forward-looking statements involve known and unknown risks and uncertainties, some of which are beyond the company's control. Management's expectations for the company's future necessarily involve a number of assumptions, judgments and estimates, and various factors could cause actual results to differ materially from the expectations expressed in these and other forward-looking statements. The company undertakes no obligation to update forward-looking statements it makes to reflect events or circumstances occurring after the date of this press release.

The financial and other information contained in this recording are only as of the dates stated or shown. The information could be out of date and no longer accurate. Freddie Mac undertakes no obligation, and disclaims any duty, to update any of the information in those documents.