The Technology Advantage
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Accurate valuation of collateralized note portfolios requires the isolation, assembly, and modeling of a large number of dissimilar quantitative and qualitative variables for each asset, then combining values for the portfolios as a whole. A significant complication is the sensitivity of asset values to constantly changing market economics.
Capturing, using, and adjusting valuation data is challenging as much of the information is often hidden within loan origination documents and market information sources. We apply a systematic approach to identifying and tagging data associated with determining value while introducing a means of making adjustments at a granular level that is commensurate with market dynamics affecting value. The approach is rooted in taking advantage of modern analytical and programming tools, computer processing speeds, and storage capacity. This produces a simplified means of rapidly determining four separate valuation scenarios:
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Hold to Maturity
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Restructure
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Foreclose
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Discounted Payoff
Our use of this powerful tool offers us a competitive advantage by providing the ability to rapidly find a current initial starting point for valuation. This allows us the opportunity to act more quickly when an asset becomes available.