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SPO

SPO
Second Party Opinion

Get an independent and well-founded opinion on your institution’s financial instruments, whether individually or on a portfolio basis.

• HOW WE DO IT

• BENEFITS

• FOR WHOM

• Case study

We help you understand and decipher whether the financial instruments in your portfolio are aligned with your investment and risk policy. How?

How we do it

Extensive financial analysis

  • We analyze and evaluate the instruments in your investment portfolio, focusing on identifying risks associated with the issuer, whether they are governments, companies, or supranational organizations;
  • We identify and analyze potential risks related to market conditions, liquidity, interest rates, exchange rates, credit, and capital structure;
  • Additionally, we assess country risks from economic, financial, and political perspectives.
Benefits

Independent and unbiased analysis

  • Through specialized and impartial research, we carry out an objective assessment without conflicts of interest;
  • A professional opinion instills confidence that investments are aligned with financial objectives and industry standards.
  • We internally develop multi-factor scoring models that make the investment and risk management process more efficient;
  • Ability to respond in a timely manner, meeting delivery deadlines.
  • The ultimate objective is to optimize the investment portfolio: identify potential areas for improvement with specialized recommendations that can maximize profitability and improve overall investment performance and risk management in a structural way.

Know-How

Reinforced reputation and credibility

  • For companies and institutions, the SPO service can improve reputation and credibility with investors, stakeholders and regulators. This demonstrates a commitment to transparency and responsible investment practices.
For whom?

  • Banks

  • Insurance companies

  • Pensions funds

  • Asset managers

Contact us
Case study

  • SPO - Second Party Opinion

    Portuguese Bank Bond Portfolio

  • Client description

    Mediu-sized portuguese bank

  • Client's goal

    The client, a medium-sized financial institution operating in Portugal, wanted to obtain an independent and impartial assessment of its bond portfolio. The goal was to obtain a reliable and credible Second Party Opinion (SPO), provided by Dolat Capital, that included a comprehensive analysis of issuers, individual bonds and an aggregate portfolio assessment, using a multi-factor scoring approach. The client wanted accurate information on credit quality, associated risk and compliance with regulatory and governance standards.

  • Dolat Capital's Solution

    We developed a customized solution to meet the client's specific needs. Using our expertise in credit risk analysis and extensive experience in the financial and debt markets, we carried out a rigorous assessment of the bond portfolio:
    • We have implemented a multi-factor scoring approach, considering several relevant factors, such as issuers' payment capacity, financial health, underlying credit quality, compliance with governance standards and other key aspects. For each individual bond, we analyzed its characteristics, terms and conditions, risk profile and compliance with the established criteria.
    • Additionally, we applied advanced risk analysis techniques, including calculating the portfolio's Value at Risk (VaR). This metric made it possible to assess the overall risk of the portfolio, considering diversification, exposure to different sectors and interdependence between obligations.
    • Based on these analyses, we provided an independent and comprehensive Second Party Opinion (SPO), presenting the results of multi-factor scoring for individual issuers and bonds, as well as aggregate portfolio assessment, including risk metrics such as VaR.
    • We worked aligned with the client's internal treasury and capital markets departments;
    • Results were shared through a simple, digestible output with clear, actionable facts
    • The implementation of an efficient methodology allows the client to obtain an analysis of their portfolio more frequently than would be possible without our support.

Client Feedback

Dolat offers an exceptional financial research service, with a highly qualified team and a personalized service. Customer support is extremely efficient, in an increasingly demanding context where time is a crucial factor. I am very pleased to work with Dolat.

AndréTreasury Management and Capital Markets

Institutional investors and corporates

Outsourced CIO: Outsourced Chief Investment Officer

Outsourced CIO: Outsourced Chief Investment Officer

Your partner to navigate risks and achieve the financial goals of your institution
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Research on demand

Research on demand

Optimal investment decisions require specialized financial analysis
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SPO: Second Party Opinion

SPO: Second Party Opinion

Independent and substantiated opinion regarding the financial instruments from a portfolio
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FAQs

1. Is the assessment of a portfolio's risk profile included in the SPO service?

Yes Yes. We assess a portfolio’s risk profile through a comprehensive analysis that goes beyond traditional risk measures. We consider factors such as portfolio asset allocation, diversification, concentration, liquidity and underlying investment strategies. The service also includes assessing the alignment of the portfolio’s risk profile with the client’s investment objectives, risk tolerance and regulatory requirements, to provide an overall assessment of the risk profile.

2. Is it possible to assess the sustainability and investment practices that impact a portfolio?

ESG investments – Environmental, Social, Governance – are one of the practices we evaluate with the SPO service. Through an exhaustive analysis of the integration of ESG criteria into the investment portfolio and their respective impact, we assess the extent to which sustainable and responsible investment principles are incorporated into the portfolio’s investment process, allowing clients to obtain information about their performance ESG and alignment with your sustainability objectives, also giving specific recommendations to customer needs.

3. Can the SPO service help identify potential hidden risks in a portfolio?

One of the main objectives of SPO is to identify potential risks that are not noticeable in a portfolio. We assess risk exposure of underlying investment instruments, along with evaluating factors such as leverage, liquidity risk and other potential sources of hidden risks.

4. What is a Second Party Opinion (SPO) in the context of credit risk analysis?

A Second Party Opinion (SPO) in the context of credit risk analysis is an independent assessment carried out by external experts on the creditworthiness or viability of a specific loan or investment. This additional, impartial opinion provides valuable insights into the risks involved, the borrower’s ability to repay, and the likelihood of meeting financial obligations. SPO complements internal credit risk analysis by providing an external perspective and helping investors and financial institutions make more informed and informed decisions.

© Dolat Capital, Empresa de Investimento, S.A. All rights reserved.

Dolat Capital, Empresa de Investimento, S.A., with registered offices at Avenida Miguel Bombarda, 42 – 6.º D, 1050-166 in Lisbon, NIPC 513852441, with CMVM registration number 368, through its digital platform, provides investment advice of a specific nature to its clients, based, among other things, on their risk profile and financial objectives. The information contained on this website is generic and does not constitute a recommendation or investment advice. Past returns are not a guarantee of future returns.

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