Moody's, State Street and MIT Form Risk Consortium

Moody's (MCO) and State Street (STT) Global Markets have joined with Andrew Lo, professor at the MIT Sloan School of Management and director of MIT's Laboratory for Financial Engineering, today to announce the formation of a consortium to provide independent, quantitative research, insight, and leadership on systemic risk in the global financial markets.

The consortium says its aim is to "seek to foster collaboration between academic and industry research communities to research the interrelatedness of markets and potential sources of systemic risk."

"Understanding the interconnectedness of markets has become an increasingly critical topic for investors and academics alike," said Lo, founding member of the consortium's academic advisory board, in a press release. "My collaboration with the consortium members will provide additional resources from various areas of expertise aimed at developing new approaches that institutional investors require to better manage risk."

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