Bond Agent™

Bond Agent™ is a tool designed to create waterfall cash flows, price discovery and/or investor reports for all the varied structured finance products used in the Capital Markets today.

Deal Structure – Supporting complexity

A flexible deal structure that supports complex deals including the following features:

  • Amortizing swaps and caps
  • NIM (net interest margin) bond
  • IO (interest only) bond
  • Collateral groups: ability to map collateral to specific class groups
  • Lock-out bond

Collateral Cash Flows

The projected cashflow from the underlying assets (collateral) is modelled in WinOAS™ at the tranche or loan level. These form the inputs to the waterfall structure which is built from a set of standard template structures or customised structures based on the Offering Memorandum on any deal.

Collateral can be mapped to tranches within the tool as well as the functionality to cater for cross-collateralisation.

Bond Cash Flows

The sequential pay-down will be displayed and the configuration happens within defined parameters based on the prospectus

Defining the Waterfall – Rule engine for customisation

A “rule engine” enables MIAC to create and deliver new types of payment rules empowering us to customise the tool to a client’s needs:

  • Ability to create and modify any trigger events
  • Senior enhancement percentage
  • Rolling delinquency, cumulative foreclosure
  • Reverse turbo rules for subordinate classes
  • Adjust pre step-down/up OC target levels
  • Pro rata principal distribution
  • Cross-collateralisation support
  • Target percentage for subordinate classes
  • Cash account support
  • Net WAC cap support
  • Ability to direct prepay penalty cash flows

Bond Price/Output

  • The Bonds are priced and displayed based on the collateral cash flows, the deal structure, and the discount rate
  • User definable cash flow table outputs
  • Investor reports

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