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STRESS TESTING

See how each property, fund and portfolio will respond to a stress scenario

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Stress testing investment portfolios is a useful exercise in risk management but difficult to do accurately and quickly. Property assets will behave differently in stress scenarios depending to a large extent on the existing lease contracts as well as changes in rental values, inflation and interest rates.

ProMS allows users to replace the standard set of economic and property related scenarios with a single 'stress' scenario or forecast and then to analyse the cash-flows of each asset and portfolio under the stress conditions. Whilst economic risks remain the same for each scenario, the effect of property specific risks, such as tenant default and tenant behaviour at lease events, is still uncertain and ProMS models this uncertainty.