Structured Finance Solution Providers
While pure services, unpaired from consultancies, are rare in the structured finance market, we have found four services from different companies that serve this niche. Note that examples of "solutions" in the sense of products, software, SaaS, etc. for the European securitization market are extremely rare compared to the number of firms that advertise their consulting services (e.g., Kirklands). We hypothesize that, between the rapidly-changing regulatory environment and stagnant investments in ABS, etc. (as covered in another brief), this area is underserved because of a perceived lack of opportunity and profitability.
- Global ABS Portal
- Global ABS Portal enables sponsors and originators to upload data to the European DataWarehouse, publishing "a cash flow model that is necessary to meet certain transparency criteria within the STS disclosure requirements."
- Moody's had developed a partnership with the European DataWarehouse, according to Moody's Managing Director Marc Levine, as "a part of our ongoing commitment to support structured finance issuers, sponsors, and originators in their funding execution and ongoing administration requirements."
- Moody's suite of structured finance solutions also includes the Ki platform, which enables "funding optimization and investor reporting, [and] helps issuers of securitizations produce templates required for regulatory reporting."
- DealVector "combines a proprietary database of non-public holdings with an identity-protected communication platform" to provide deal management, stakeholder management, and data management.
- The platform protects identities while enabling "participants to easily find, authenticate and communicate with each other," making the securitization market "more transparent and resilient to external shocks as desired by regulators" and the transparency requirements of STS.
- "Investors, Trustees and Issuers have complete control over their communications and when to mutually opt-in to share identities," enabling a "functional transparency" while still providing the privacy required by regulations.
Moody's (formerly Deloitte)
- ABS Suite; note that Moody's Corporation acquired the platform from Deloitte in October 2019.
- The platform "provides a customisable data architecture that is easily adjusted to accommodate an unlimited number of asset classes, interfaces, and transactions" and thus provides a flexible solution to high data intensity.
- In addition, "workflow automation allows processing to run unattended and minimizes precious work hours required to perform multiple tasks," reducing the cost and labor of handling the large volumes of data needed in the securitization market.
- LoanCracker and LoanPilot
- LoanCracker is an online visualization tool designed for Big Data analysis, instantly aggregating data "across millions of rows."
- LoanPilot "produces PD’s, LGD’s and IRR at each confidence level for every tranche" in order to satisfy the transparency requirements of STS and EC Proposal 472.