Background

In this market environment where banks are more concerned than ever about borrowers’ ability to pay their loans back, bondholders want continuous surveillance they can rely on. This was especially true for our client, one of the world’s largest managers of fixed income funds.

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Challenge

Our client has a huge pool of assets. They have a client roster of money management companies, insurers, and pension funds relying on them. The stakes were high and they needed a partner who could provide them with reliable assumptions on occupancy and other rates. The better and more accurate the data, the better they could ascertain the chances of default on a wide scale and accurately gauge pricing on their bonds. That led to the biggest challenge of all for us: devising a way for assumptions to be updated continuously.

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What we did

Townhouse created a surveillance process to review their historical CMBS transactions. It was a large, high priority project that highlights the scope of engagements we can take on and excel on. The personal service and continuity of our team members was the key to helping our client achieve consistently accurate pricing.

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How it worked

As a result of the process we built, our client is able to stay on top of the value of their securitizations like never before. That in and of itself is a huge benefit. Our ability to constantly update market assumptions is enabling them to forecast defaults and gauge their pricing more accurately. Our success on the project has led to a unique partnership with our client in which we continue to manage the process we created and know so well.