Our most successful work often involves working through the most tedious tasks relating to a structured finance position. Our clients receive better information and are more capable of understanding their positions because we dissect the detail.
Reliable Data ‘Scrub’
We find better data and we question all outputs before any analysis is performed. Fundamentally, a great deal is lost in translation between the borrower-servicer-trustee and investor. As defaults continue to mount in the underlying transactions, there is an increasing amount of human touch that occurs with information flow. Human touch creates data error and miscalculations that no model can solve.Deal Documents
Though no one likes to read them, they are home to the most relevant information for all transactions. An evaluation of a structured product is not complete without a thorough review of specific classes’ positions within the transaction structure. We focus on the features regarding what investors are owed, and determine whether the rules outlined in the documents are being accurately followed. It is critical to understand the language with precision to determine the rights of each classholder.Portfolio Analytics
Either through defaults or consolidation, portfolios often have a high degree of concentration in a particular sector or counterparty that is not transparent to the investor. Due to multiple investments, investors often receive information from a variety of trustees, servicers, or third party asset managers without regard to these specific credit exposures.Cash Flow Modeling
We use best-in-class models across all structured finance products. However, a model’s output is only as accurate as its assumptions and data, and the reasons behind both. Our models are easily explained, the stresses are transparent. We adjust inputs to display sensitivity to potential events, and present confidence intervals that determine the likelihood those events will occur.Deliverable
While we deliver valuations, surveillance, and education, the most important output of our work is the information we provide for an investor to make a decision. Our discoveries are often quite simple, yet can be significant. We do not diminish the importance of cash flow modeling; although, the outputs our clients are most impressed with is the information behind the model that isn’t easily obtained through conventional means. We are retained by some institutional clients who are simply driven to receive better information.Scope
We understand that more than ever, your needs are continually evolving. We work with you to create a scope that tailors exactly to your current needs, with built-in flexibility to shift direction as your business and markets evolve. Whether the shift is due to auditor demands, board requests, or new legislation, we will make sure you are in the best position possible - with the right information at hand.
