Pre-Purchase Analysis Case Study: Major U.S Investment Banking Firm Licenses JSP for Asset Management

Client’s Challenge

  • The client, a large U.S investment bank, underwent a project to overhaul their pre-purchase analysis workflow to improve management of their $150 billion fixed income portfolio.
  • Five Bridges approached the client regarding Javelin for Structured Products (JSP), our RMBS analytics platform, as a potential solution for the client’s fixed income management team.

 

Our Solution

  • Five Bridges worked with the client to identify regulatory, compliance and valuation needs they were facing.
  • By leveraging Five Bridges’ JSP platform, the client was able to meet the following needs:
    • Valuation: The client needed the ability to generate up-to-date price market prices for potential investments to add to their fixed income portfolio. Our platform allowed them to forecast market prices and yields for any settlement date across customizable user-defined scenarios.
    • Cash flow forecasting: The client needed to forecast cash flow metrics including P&I payments, losses and liquidation. Our cash flow reporting tools allow users to generate pool-level cash flow forecasts across user-defined scenarios.
    • Benchmarking: Our benchmarking tools gave the client the ability to leverage third-party data to create custom benchmark pools and compare collateral performance data to get a more granular picture of securities prior to purchase.

 

Outcome

  • The client was able to significantly improve their RMBS pre-purchase analysis operations by leveraging JSP’s analytical tools.
  • With the help of JSP, the financial institution created a transparent auditable process that can be viewed by internal managers and regulators during the pre-analysis phase.
  • In addition, JSP was introduced into multiple stages of loan & portfolio analysis process making sure that users have the flexibility to conduct transparent analysis at any stage.