What is Loan Participation? Participations are legal and financial arrangements used to reduce or gain exposure to chosen market segments. Participations are often on larger portfolios or pools of loans, say a $100mm pool of auto loans. In this case, the seller of the...
When calculating CECL, Edge utilizes the regularly updated Moody’s Expected Consumer Credit Loss (ECCL) data file, which provides five-dimension (economic scenario, loan type, vintage, state, and FICO) prepayment and credit loss assumptions through econometric models...
Edge Tradeworks uses an Option-Adjusted Spread (OAS) discounted cash flow approach to calculate loan prices. The OAS approach is superior to traditional approaches that use yield or static spread (Z-spread). Traditional pricing approaches only use one interest rate...
Edge Tradeworks has re-engineered the whole loan trading process to leverage data, analytics and an innovative platform to empower financials institutions to make fair, efficient and profitable transactions – without intermediaries. Unlike traditional...