Securitization and Structured Finance Post Credit Crunch: A Best Practice Deal Lifecycle Guide

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Vendors

Similar to the provision of data, some third parties have recognized the commercial value of providing modeling tools. In fact, it is, of course, easier if you already have most of the data (i.e., the input into those models) which means you can then run models (i.e., the computation and procession of the data) with these data and provide the relevant results (i.e., the model output).

If you were to model certain asset classes, then you will need data—loads of it. Not just current data but also historical data points—most providers will charge you for the provision of historical deal data to compensate them for storing the data in deal libraries or repositories; and the large volume of data means you need to build powerful systems or data repositories to store and process all this information—something that is taken care of if you use commercial providers to handle, store, and supply this information if and when required.

Furthermore, if you were to subscribe to this information in an electronic downloadable format, then you would also typically need them to compensate for the fact that you are downloading some or all of their information—which enables you store this bulk data locally.

Finally, if you wish to run this information through various scenario models and/or cash flow models, then you will need to purchase or subscribe to the use of these models for which these firms will also charge. All in all, paid for subscriptions to data plus historical information plus ...