What’s Changing
dv01’s cashflow engine now supports revolving credit behavior, enabling scenario analysis for credit cards and other revolving asset transactions. New inputs include
- Monthly Payment Rate: This unit refers to the percentage of outstanding revolving credit card balances that cardholders pay each month. This assumption represents borrower payment behavior over time.
- Pool Balance Growth: This assumption variable refers to the incremental balance growth across all revolving assets to reflect how borrowers draw on available credit lines over time. This assumption captures additional utilization beyond the current drawn balance.
Note: The cashflow engine currently supports collateral-level and single ABS series–level projections only. Master trust–level projections are not supported at this time.
Who Is Impacted
All users
Why This Is Important
Credit card portfolio investors can now run cashflows directly within dv01, using MPR and Pool Balance Growth assumptions to reflect revolving credit behavior and project collateral performance.