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

22

Bloomberg’s structured finance tools: Tricks and tips

This chapter provides you with an in-depth look at Bloomberg’s suite of analytical tools specifically focused on structured finance. There are many more non-structured finance–specific functions that can be useful to support your analysis; however, this also depends to a large extent on the focus of your particular area.

For the generic function please use Bloomberg’s online resources such as:

• Help.

• 24/7 Live chat.

• Cheat sheets.

• Bloomberg university, etc.

The functions that follow can all be accessed via the main menu for mortgages—<MTGE><Go>.

22.1 STRUCTURE PAYDOWN FUNCTION (SPA)

The Structure Paydown (SPA) function is useful to chart projected cash flow patterns for all tranches within Bloomberg’s selected CMO/ABS/CMBS mortgage deal credit group allowing users to display and visualize the waterfall for the selected deal.

Once you enter the Bloomberg ticker <MTGE>SPA<Go>, the structure paydown screen (see Figure 22.1) appears, where users are presented with the following options:

• Change. To change the data that appear, the user can enter/choose the appropriate information in/ from the highlighted fields that appear followed by pressing <Go>.

• Display. To display the corresponding historical information for a specific data item that appears at the top of the screen, the user can select and click on the appropriate data item.

• Create a new vector or curve. To create a new vector or curve to be used within the analysis ...