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.
Waterfall logic can be implemented via an easy to use wizard or programmed via a flexible scripting language. Both options allow for standard vanilla bonds and nonstandard complex structures.
For existing bonds, the waterfall logic can be imported from the Moody’s library where the user has access.
Projected cashflow from underlying assets (collateral) can be modelled in Vision™ or imported from a separate source file. Loan or tranche level cashflows are then input into the waterfall structure which creates the bond level cash flows.
Collateral cashflows can also be derived via the new volume feature for bonds that include a revolving structure or are pre-funded.
The Bonds are priced and displayed based on the collateral cash flows, the deal structure, and the discount rate. The price/yield table enables the user to solve for price or yield and the scenario tool allows for any number of sensitivities along key parameters and stress tests.