Overview


In short, this tool streamlines the arduous loan allocation process, replacing manual efficiencies and elevating your financial strategy. 


Our Leverage Optimizer helps navigate the intricacies of financial operations. dv01 adds originator/servicer feed data into our ETL pipeline that cleanses and standardizes the data. Additionally, we translate credit agreements into mathematical equations, plugging in the loan data and solving for maximum leverage across all capital market vehicles.


Functionality includes and is not limited to:


Full Loan Allocation

  • dv01 evaluates your vehicles and provides a single report outlining how loans should be allocated, optimizing for the most amount of leverage possible.

Daily Assignment

  • As new loans are originated or purchased, dv01 can allocate loans across your vehicles for maximized leverage.

Pro Forma Analysis

  • Whether it's facility amendments, sales/securitizations out of facilities/vehicles, running pro-forma borrowing bases, or other hypothetical evaluations, dv01 can model the rules to understand the net effect of the changes in real-time.
  • The tool identifies binding constraints on each vehicle and the advance amount if constraints were to be amended.

Time Efficiency 

  • Automate manual processes, reducing time requirements from hours to minutes and allowing your team to focus on strategic decision-making.

Leverage Enhancement

  • Maximize borrowing power through a mathematical framework that strategically enhances leverage.

Risk Mitigation

  • Identify and address compliance issues, overcollateralization, under-utilization, and risk vulnerabilities.


Process


There are three main steps in onboarding a vehicle with our Leverage Optimizer Tool. While the interface allows for a user to onboard fully self sufficiently, dv01 is happy to help with the onboarding:


  1. Runs and Data Configuration
    1. Access different runs (scenarios) and create an optimization.
    2. Linking and configuring the datasets that dv01 has ingested as well as mapping the fields needed for each dataset.
  2. Building Capital Markets Vehicles
    1. Naming a vehicle and defining its configuration.
    2. Defining eligibility restrictions, advance rates, excess concentrations, aggregations, and leverage reduction amounts (reserve accounts).
  3. Run Optimization and Reports
    1. Run the optimization after the vehicles are built
    2. View the output via our front end and download the excel report highlighting the loan tape, vehicle specific output, and the total output across vehicles.