Securities Analyzer Standardizing Unstructured Data for LIBOR Transition
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Solution Overview
Problem
Current systems lack the ability to efficiently analyze and provide automated responses to specific questions involving various types of input data, including structured, semi-structured, and unstructured data, which is crucial for managing the transition and risk assessment of LIBOR-indexed securities as LIBOR is phased out, affecting $15 trillion in outstanding securities.
Innovation Solution
A computer-implemented method and system utilizing artificial intelligence to analyze structured and unstructured securities data by converting files into a standardized format, applying domain-specific expressions, and generating responses to questions related to ESG compliance and LIBOR transition, enabling comprehensive analysis and risk assessment across asset manager portfolios.
Engineering Contradictions & Design Principles
Engineering Contradiction Analysis
1Extent of automation
If digital tools in various formats and coding languages are used, then automation capability is improved, but integration difficulty increases and customization capability deteriorates
Solution Approach 1:
The system employs a universal data processing framework that can handle multiple input data types (structured, semi-structured, unstructured) through a single integrated platform. The standardized data format serves as a common language that enables different tools and processes to work together seamlessly, eliminating the need for separate integration solutions for each data type while maintaining full automation capability across diverse securities analysis tasks
2Extent of automation
If existing digital tools are used, then basic automation is achieved, but the ability to provide customized automated solutions deteriorates
Solution Approach 1:
The system incorporates dynamic configuration capabilities that allow automated analysis parameters, question sets, and processing logic to be customized without requiring code changes. Users can dynamically adjust analysis criteria for different securities types, regulatory frameworks, and risk assessment models while maintaining the same core automated processing engine, thereby achieving both basic automation and tailored solutions
3Reliability
If manual analysis of securities documentation is performed, then accuracy is maintained, but time consumption increases and productivity decreases
Solution Approach 1:
The system performs self-service analysis by automatically extracting, processing, and analyzing securities documentation without requiring manual intervention for routine tasks. The automated question-answering capability processes entire documentation sets independently, maintaining accuracy through standardized processing logic while dramatically reducing the time investment required compared to manual review methods
4Reliability
If comprehensive analysis of LIBOR transition risks is performed, then risk assessment quality is improved, but system complexity increases
Solution Approach 1:
The risk assessment system is segmented into modular components that handle different aspects of LIBOR transition analysis independently. Each module processes specific documentation types or risk factors separately before integrating results through standardized data formats, allowing comprehensive risk assessment while keeping individual components manageable and reducing overall system complexity through structured organization
Data Source
AI summary
The invention relates to computer-implemented systems and methods for analyzing and standardizing various types of input data such as structured data, semi-structured data, unstructured data, and images and voice. Embodiments of the systems and the methods further provide for generating responses to specific questions relating to certain rates and terms, such as LIBOR, as well as complex legal constructs, such as interest rate fallback waterfalls, for risk assessment and mitigation. The present invention performs environmental, social, governance analytics on asset-backed securities including commercial mortgage-backed securities.