Tying out the deal models on Clients’ proprietary tools and Third-party tools to ensure consistency in the resultant waterfalls.

Issuers of Structured finance securities need deal model for the deals they have issued. This model is required for forecasting of future cash flows for various stress scenarios. For the initial modeling/structuring of deals, MS-Excel is used extensively. This is done by the structuring team of the client. Once the deal is structured in MS-Excel, it is modeled in other third-party tools (e.g., Intex, Wall Street Analytics) for various purposes including providing the cash flows to Bloomberg, updating the various balances on interest payment dates and testing deals for various stress scenarios. An inconsistency arises when the cash flows generated from Third-Party tools do not match those generated from the MS-Excel model. A faulty cash flow model will lead to faulty analysis and potentially a wrong investment decision. One remedy for this problem is to tie out the cash flows of MS-Excel and Third-party tools. Byte has modeled more then 4000 structured finance deals in either Excel or other tools. Byte leverages these two specialized skills and matches the cash flows from MS-Excel and other tools to achieve the quickest turnaround time using the most efficient means.