Structured finance research and analytics support to a global investment bank

  • 15-20%

    more client-facing time for bankers

  • $20bn+

    new issuance structuring support

  • 5,000+

    projects handled every year

  • 15%

    increase in deal volume due to offshoring

CLIENT CHALLENGES

  • The client’s board of directors wanted to accelerate expansion of its securitisation services under the company’s strategic growth plan
  • Acuity Knowledge Partners (Acuity) was picked as the knowledge partner after a rigorous selection process
  • The client’s Asset Finance team received raw loan tapes from multiple sources, including in-house teams and vendors, and required support in cleaning and analysing these loan tapes
  • Asset classes included auto loans, equipment loans, student loans and residential mortgages

OUR APPROACH

  • Acuity put together a team of structured finance experts with hands-on knowledge of Excel and Collateral Analysis System (CAS) to work closely with the Asset Finance team
  • Acuity designed CAS models to load data into the system and perform data sanity checks, work with vendors to fill in data gaps and make the required data assumptions and transformations to convert raw tapes into a standard format as per the client template
  • The Acuity team also created stratification tables and designed dashboards to capture key portfolio characteristics for senior banker review
  • Over time, Acuity took on the responsibility of designing compression logics for creating replines and forecasting cash flow under various scenarios through INTEX DealMaker
  • The Acuity team also took on the responsibility of performing deal tie-outs and other agreed-upon procedures, working directly with auditors of the transactions

IMPACT DELIVERED

  • Acuity’s support helped free up onshore bandwidth to focus on business development
  • Over time, the client increased the size of the Acuity team from two to eight FTEs
  • Due to Acuity’s support, the Asset Finance team was able to handle the increased deal volumes and improve analytic rigor to optimise asset pool selection
  • Acuity’s support has helped the client significantly expand its securitisation services without having to hire and train resources onshore
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