Cash Flow Simulator

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The Cash Flow Simulator analyses whether the cash generated by a portfolio of assets (usually of a Structured Finance transaction) can satisfy the timely or ultimate interest and principal payments of the liabilities, applying different stress scenarios.

The user interface is unique compared to equivalent tools in the market, built to be as simple and intuitive as possible.

The product’s flexibility allows it to be used across a variety of Structured Finance asset classes and if required, it can be used in conjunction with our Portfolio Risk Calculator product, which can perform the asset analysis that forms part of this product’s inputs.

The flexible user interface allows the underlying assets to be specified in multiple ways, ensuring the tool is suitable for different asset classes and levels of granularity. At this stage, all of the asset side assumptions are also uploaded including default and recovery levels, default and recovery timings and prepayment rates. To increase the efficiency and usability of the tool, users can use the excel templates provided to upload all information on the asset side.

The capital structure, reserve funds and any transaction fees can be specified in the liability side set up. After entering all of the required details, users can use a completely unique, flexible and intuitive order to specify the waterfall priority of payments using dynamic drag and drop functionality. Users can easily specify triggers that result in alternative orders of priority in this section, with the ability to apply logical operators against any of the items in the waterfall.

After both the asset and liability side have been set up, all different scenarios / combinations of the different assumptions can be run at the same time. The output has a variety of different information, including the maximum risk score that every note class in the liability side passes across all scenarios. Users can also analyse all individual scenarios in more detail, including the shortfall amounts for any risk score levels failed at.

Product Benefits

Variety of Structured Finance Asset Classes
The flexible asset side input allows you to specify in different formats, providing the ability to test both granular & non-granular portfolios.
Perform scenario analysis to determine at what risk levels transactions can satisfy the note interest and principal payments.

Students & Academic Institutions
Learn, with our easy-to-use interface, how to run comprehensive scenario analysis to assess the risk of a Structured Finance transaction.
All Transaction Counterparties
The various counterparties of Structured Finance transactions can assess the up-to-date risk as underlying portfolios and expected scenarios evolve.