Copying and distributing are prohibited without permission of the publisher.


Moody’s Analytics adds ABS to expanding structured finance portal

By Will Caiger-Smith
21 Sep 2014

Moody’s Analytics is expanding its structured finance portal, a loan-level data analytics platform initially focused just on collateralised loan obligations, to include certain forms of ABS.

The portal, an online service which enables users to digest a vast data set for existing CLO deals, pulled from trustee reports, will now include auto, credit card and student loan ABS, the firm will announce tomorrow.

The product includes loan-level data on CLO transactions, like default probabilities and financial ratios, and hundreds of metrics on manager style and performance.

The “empowering” tool enables capital markets participants to gain an unbiased view of the performance of structured finance instruments, said Bhargav Jani, a senior director at Moody's Analytics, at the ABS East conference in Miami on Sunday.

“Every [CLO] manager says they’re beating the market,” said Jani. “I don’t know if there was any tool until this product was launched that actually allowed you to vet that statement.”

“It provides a tool to the structured finance market where every participant can go in and analyse the data points into an unbiased position. We’re not providing any opinions. It’s empowering.”

As well as being used by market participants, the portal could also be used by regulators as they push for greater transparency in the structured finance markets with legislation like Regulation AB II, Jani said.

Around 15 clients are now using the portal, including a large investment bank, a major insurance company and several accounting firms and CLO managers. Moody’s Analytics initially thought investors would be the biggest users, but demand has proven to be broader, said Jani.

By Will Caiger-Smith
21 Sep 2014