Are you challenged with Blended Funding?
Ki was designed ……
- Tracking individual pledged pools with balances frozen as of cutoff
- Avoid dual encumbrance or the cross selling of assets day over day
- Identifying the correct pledged assets to report on the determination date
- Report on the correct balances and movements in capital from the cutoff date to the determination date as the number of days varies for each pledge
- It gets difficult to determine eligibility and calculate compliance numbers using characteristics of assets based on an as of date when pledging new assets into the facility or repurchasing assets from the facility
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Does Ki have advanced logic to execute customizable complex selection criteria?
Ki supports the ability for users to set up many different types of custom eligibility criteria, compliance (weighted averages, concentration limits) and other parameters to support the pool selection process. Behind the scenes, Ki runs a solver which takes into account all of the eligibility and compliance parameters along with the applicable advance rates and iterates through thousands of combinations to maximize on the desired balance while ensuring all aspects of the source and target pools remain in compliance.
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Does Ki support “term-out” scenarios?
New securitizations often consist of loans that are both unencumbered and pledged to warehouse lines. When doing a deal of this kind, Ki automates the process of ensuring that existing warehouses from which assets are being removed remain in compliance while building a compliant term securitization pool. In addition, users have the ability to define the order of priority for the source of assets. Overall, this functionality is a major benefit of Ki since all of the optimization across the various source pools and target securitization occurs automatically as opposed to requiring users to iterate through multiple combinations manually.
Does Ki provide the ability to run a pool selection scenario and reserve selected assets, with the option to release them later?
Yes. Users can commit a scenario which locks down the assets from use in other funding scenarios and avoids dual encumbrance. Furthermore, selected asset pools can later be modified, while preserving selected assets, if the size of the desired pool changes in the future.
How does Ki support the warehouse allocation process?
Ki allows organizations to set up each of their warehouses including the associated borrowing base logic, compliance rules, eligibility criteria and facility limits. When new loans are originated, Ki will automatically allocate the loans to the warehouse lines based on the most attractive advance rates while ensuring compliance rules, eligibility criteria and any user-defined target amounts are maintained.
Can Ki perform dynamic discounted principal balance calculations?
Multiple discount rates can be entered as parameters within Ki. Based on the discount rates and the applicable payment schedule, Ki provides users with the ability to run scenarios using the calculated discounted principal balance.
Can Ki users choose different balances to reach a pool target amount?
Yes. Users can select from any number of balances in a given scenario such as:
- Loan balance
- Adjusted receivables balance
- Lease securitization value
- Net balance