|
|
|
Home >
Products > Student
Loan Models |
|
|
|
Student Loan Asset Backed Securities
(SLABS) are a prominent sector of the ABS market with more
than $400 billion in assets backing various deals issued in
the market. They have traditionally appealed to fixed income
investors owing to their high credit quality and low spread
volatility, and formed a regular fixture in all the major
institutional investors’ portfolios. But most investors are
now realizing that there are many other factors which affect
the timing and realization of cash flows of the student loan
securities that were not accounted for when they originally
invested in the transaction.
In order to address the various issues faced by SLABs
investors, Byte has formed a partnership with the experts in
the SLABS domain, Education Investment Group (www.educationinvestmentgroup.com).
Together, Byte and EIG are going to address the market need
for reliable research and analytics services around student
loan asset-backed securities.
Using their deep experience in Student Loans domain as well
as structured finance analytics, Byte and EIG have together
come up with a proprietary tool to model SLABS cash flows.
Our proprietary tool, we feel, is the most comprehensive and
robust tool available in the market today.
The Byte/EIG student loan model provides the user with
unparalleled versatility in collateral assumptions. The
model allows the user to examine the performance of
representative collateral summary lines to ensure their
assumptions are functioning as expected. Given the variety
of student loan types, our experts will customize each model
to have inputs that accurately reflect the student loans
underlying the deal. For example government backed
consolidation loans may have risk-sharing and rejected claim
inputs where as private credit deals will simply have
default and recovery values. Our models will be more than
“one-size-fits-all”.
Some of the features of the tool include:
|
|
 |
Allows the user to run break even
scenarios to test default levels and interest rate risk. The
model can determine at what default rate or Libor / Prime or
Libor / CP spread will cause a particular bond to lose
principal. |
|
|
Allow the user to customize their
cash flow projections to a very high accuracy through
detailed collateral inputs based upon their particular set
of assumptions. |
|
|
The ability to save up to 10
different scenario assumptions for ease of use. |
|
|
Detailed graphs to illustrate when
certain triggers are hit and to help rationalize when
certain payments are made. |
|
|
|
|
Some of the other services we provide investors for Student
Loan Asset Backed Deals include:
 |
|
|
Cash-flow models for our client’s
portfolio of SLAB deals. |
|
|
Proprietary pre-issuance student
loan models to evaluate, price and analyze student loan
asset-backed securities, residual interests and whole loan
collateral. |
|
|
Whole loan collateral valuations and
other analytical services to facilitate the sale of whole
loan portfolios. |
|
|
Maintenance of cash-flow models on a
quarterly basis as and when the trustee report is issued. |
|
|
Modeling and valuation of student
loan trusts such as Auction Rate Securities, Reset Rate
Notes, Variable Rate Demand Notes and Libor Floating Rate
Notes. |
|
|
Advisory services to issuers, credit
providers and liquidity providers for evaluating existing
student loan ABS Trusts and recommending potential
restructuring opportunities. |
|
|
|
|
|
