As highlighted in Leverage Optimizer Overview and 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.


In this section, we will run through the basics of what you need prior to building facilities or vehicles.  This includes

  • Runs - different scenarios that one has run. This could include different datasets, vehicles and terms used.
  • Data Configuration - mapped data fields and datasets used for the Run


Runs


This is where we can view and access multiple runs we have created and helps us navigate to:

  • Viewing the report of a particular run.
  • Edit a scenario that we had built across vehicles.
  • Download the output in excel format.
  • Create a new optimization.



Create Optimization and Data Configuration


You can create a new optimization from the Runs page on the top right of the page. 


Before we build out facilities or other capital market vehicles, we need to access the Datasets and Tables we want to use. For some datasets, if you want to access a particular date you can fill in the "Where" column of the Datasets table. 


Users can add multiple datasets if they are aggregating across different daily files or asset types. We also need to map certain data fields like:

  • Loan ID - this is the loan identifier field from table like loan_id_reported or UUID.
  • UPB (unpaid principal balance) - used for weighing in the table like loan_balance_current.
  • As Of Date - activity date field.
  • Platform - used for denoting distinct collateral types/originators within the same facility.
  • Account Name - used to denote vehicle allocation and determinizing immovability. 
  • Transaction Costs (not required) - could be exit fees if loans move outside a vehicle. 



The below shows the solver that is utilize for the calculations. The maximum gap is the differential between the best solutions and the best possible solution. Our default is 1bp showcasing how close we are to the best solution.