As an independent specialist, Ortec Finance provides the Ortec Finance Scenarioset (OFS) and the Dynamic Scenario Generator (DSG) - the software for calibrating, modifying, generating and analysing OFS. The OFS provides consistent, realistic and up-to-date stochastic scenarios with a worldwide coverage for long, medium and short term horizons. The OFS underlies all forward looking solutions of Ortec Finance, for institutional as well as private investors.
Using scenario models helps people and organizations to become more successful in achieving their goals because of the consistency, objectivity, transparency and efficiency that working with proper models in a proper way can bring (Read more in white paper “Relevance of scenario models”). Over the years, scenario analysis has proven itself to be an essential method to support investment decisions and the monitoring of those decisions. Besides the OFS for realistic real-world scenarios, Ortec Finance also provides outstanding risk-neutral scenarios for valuation purposes.
OFS contributes to better investment decisions and enables people and organizations to become more successful in achieving their goal.
This blog post explores three approaches to measuring the impact of liabilities on SAA: actuarial simulation, replicating portfolio, and product-based dynamic liability modelling. It also compares the advantages and disadvantages of each approach in terms of accuracy and runtime efficiency, highlighting the benefits of a dynamic liability modelling approach as a fast, flexible, and efficient solution for multi-scenario SAA analyses in a full ALM context.