Loan Portfolio Analytics

Fair Value and Stress Testing By Lenders, For Lenders.

Stout’s Loan Portfolio Analytics team has deep lending knowledge and the largest database of transactions in the industry. We leverage our unique models and valuation expertise while working collaboratively with our clients in applying judgment and contextual analyses.

With decades of expertise in loan valuations, stress testing, and credit scoring, we leverage our real world knowledge and comprehensive data to inform our advanced modeling.

Learn more about Stout's acquisition of DebtX Analytics.

Our Services

DXMark®

A trade-based, highly automated loan valuation service designed for investor reporting and fair value disclosures. Our models incorporate actual secondary market loan sale data as well as new originations and are supplemented by professional oversight and review. DXMark® is a fully audited service and is used primarily by clients with large portfolios that require daily, monthly, or quarterly pricing.

Benefits

• Audit functions / quality control
• Automated version control for every model
• Universal archive system allows for future replication of previous results regardless of model changes
• Systemic daily backup of models
• Auditing function to identify time and source of every model change
• Ability to back-test using historical market environments
• Standardized reporting
• Secure data transfers
• Limited security vulnerability with 100% in-house solution

DXValue®

DXValue® is a qualitative loan valuation methodology for real estate and non-real estate related debt. We use both the loan tape and loan file to provide a top-down and bottom-up analysis of mezzanine loans, B-notes, and transitional first mortgages. Our expert valuation team uses our proprietary, industry-leading data and trade-based valuations models to help our clients achieve objective, transparent, and defensible valuations.

Benefits

• In-depth loan analyses
• Domain-specific valuation expertise
• Consultative approach and nuanced perspectives
• Professionally underwritten valuation report

DXScore®

DXScore® enables a comparison of all your loans individually with single number (index) simplicity. It uncovers unforeseen risks and unintended biases that can be hidden by price or historical performance. DXScore® also measures the credit risk of an individual loan or portfolio of loans independent of financial factors such as required market yield. By reducing emphasis on loans’ interest earned and focusing primarily on their bundle of credit-related factors, DXScore® allows for the rank-ordering of a portfolio of loans by their overall level of risk.

Benefits

• A cost-effective “Big 3” Credit Agency alternative
• Risk-adjusted comparison of heterogeneous loans and portfolios
• Dynamic credit scores for loans
• Objective and independent metric to supplement internal risk rating systems
• Calibration customizable to mirror internal rating scales
• Efficient monitoring and tracking of risk in your loan portfolios over time
• Insights into strengths and weaknesses in originations, loans, and loan portfolios
• Comparability with other measurements of risk (e.g., the combination of Loss Given Default and Probability of Default) but with single-number simplicity
• Repeatable, consistent, transparent, and auditable methodology, meeting SSAE 18 standards

DXCDA® (CECL)

An independent credit default analytics solution down to the individual loan. DXCDA® calculates your loan portfolio’s expected losses with loan-by-loan granularity, giving you an immediate view into any potential capital impact. DXCDA® is a fully outsourced, independent CECL service.

Benefits

• Quick calculations of Expected Loss for each loan under six different scenarios, including the three Supervisory Scenarios
• Loan-by-loan calculations of PD/LGD/EL and results displayed via our user-friendly interface
• Efficient and low impact process – simply send us your data and we do the rest
• Ability to run Current Expected Credit Losses (CECL) calculations side by side with other methods
• Savings in effort, manpower, and money
• DXCDA’s model validations, SSAE 18 Soc1 Type II verified

Stress Testing & Scenario Analysis

A strategic tool for senior management to identify vulnerabilities within the business model, address risk, and enhance performance. Given that many institutions do not receive timely updates to their loans’ credit characteristics, many portfolio managers need better tools to evaluate potential risks to their loans via stress testing variables such as collateral values, cash flows, interest rates, and market spreads. Stout can perform stress testing on loans using stored historical market bottoms, Federal Reserve scenarios, or client-driven metrics.

Benefits

• Ability to simulate complex scenarios
• Regulatory compliance and disclosures
• Flexibility to supplement and test internal stress testing models
• Allowance for Loan and Lease Losses (ALLL) planning process support
• Portfolio surveillance capabilities

Loan Data Solutions

A variety of innovative information services, historical statistics, and analytical research. Banks and insurance companies, under scrutiny by regulators and auditors, use our products to justify internal Fair Value pricing methodology and answer detailed inquiries around ASC 820 / FAS 157 Level 3 valuations and disclosures. Stout’s data products include actual loan prices from secondary trades, market spread matrices for whole and mezzanine loans, and secondary market liquidity indices. Stout tracks trade data on hundreds of billions of dollars in loans and participations each year. Using over 20 years of proprietary information, market sources, and firsthand experience from former lenders, Stout provides clients with defensible fair value and expected loss models.

Benefits

• Independent, reliable, and defendable fair value and stress testing
• Collaborative, efficient, and stress-free process

Who We Serve

• Banks and financial institutions of all sizes
• Insurance companies
• Life insurance companies (LifeCos)
• Government agencies
• Private debt funds
• Private equity
• Alternative asset managers
• Institutional investors
• Regulators