avac

Background

There is widespread concern that the recent collapse in real estate prices will continue to play out in the coming months and years, bringing with it ever higher levels of default and default losses. In the face of this, policy makers are introducing a bewildering variety of new interventions that fundamentally change the incentives that are faced by borrowers and lenders alike. Unfortunately, the impact of these interventions is little understood, creating a knowledge vacuum that is equally damaging to borrowers, lenders, and to policy makers.

To fill this need, a group of world leading economists, computer scientists, and mathematicians joined forces with leading business practitioners such as a former CTO of Reuters and formed AVAC®. The AVAC team is producing cutting-edge research in understanding all aspects of real estate and real estate finance. The AVAC edge derives from three sources: leveraging massive data sets that are custom designed; design and application of the state-of-the-art spatio-temporal Machine Learning models on these data sets; and development of new models for optimal decision making in the face of default costs.