Pre-Purchase Analysis Case Study: Large U.S. Financial Institution Licenses JWL for Asset Management

Client’s Challenge

  • A major U.S based investment bank was in need of whole loan analytics to enhance their pre-purchase analysis. The fixed income division did not have the resources in place to conduct their pre-purchase analysis in an efficient manner in one integrated workflow.
  • In order to address these concerns, the client needed to put in place a robust system that can provide pre-purchase analysis and valuation quickly.
  • Five Bridges approached the client regarding the whole loan analytics in our JWL (Javelin for Whole Loans) platform.

 

Our Solution

  • We worked with clients to address regulatory, compliance and valuation challenges. The client was in need of three analytical tools for their pre-purchase analysis efforts:
    • Valuation: The client’s fixed income managers were in need of a tool to generate up-to-date as well as forward-looking price and yield results.  Five Bridge’s JWL platform allows users to forecast pricing results at both the loan and portfolio level, and simulate how price and yield changes will affect one another in user-defined scenarios.
    • Cash Flow Forecasting: JWL generates forward looking cash flow analytics at the portfolio level and will project metrics including losses, liquidations, charge-offs, and arrears on a monthly basis for the entire lifetime of a portfolio.
    • Benchmarking: JWL has a benchmarking tool that leverages 3rd party data and gives users the power to create self-defined benchmarking pools and compare with their own portfolio side-by-side.

 

Outcome

  • Five Bridge’s JWL platform supplied all analytical tools the client needed to perform pre-purchase analysis in a user-friendly, real-time web-based platform.
  • With the help of JWL, the client created a transparent auditable process that can be viewed by internal managers and regulators during the pre-analysis phase.
  • In addition, JWL was introduced into multiple stages of loan & portfolio analysis process giving client users have the flexibility to conduct transparent analysis at any stage.