AltFi Data announces upgraded analytics product including new metrics

Published on December 4, 2017

AltFi Data has today announced that it has launched an upgraded version of AltFi Data Analytics complete with new metrics to allow like for like comparison of, not only return, but also of risk.

 

Standardisation of verified data

AltFi Data is the only supplier of a standardised track record for the alternative lending market and provides a number of leading platforms with like for like comparable performance metrics. This enables investors to perform analysis, based of verified source data, covering the entire track record of each originator under coverage.

 

AltFi Data access’s loan level data representing individual loan cash flows. This includes all interest and principal payments, relating to performing, late, defaulted, or recovering loans, and enables AltFi Data to independently verify asset performance.

 

AltFi Data standardises these raw underlying cash flows to create comparable metrics covering all aspects of lending performance including:

  • Gross origination, net lending, change in outstanding principal
  • Outbound lending rates
  • Term
  • Late payments, defaults, recoveries
  • Net return and risk adjusted return

AltFi Data also provides portfolio metrics that present end to end historic track record in a format that is free from the distortions relating to inconsistent origination growth rates and default profiles.

 

 

Trailing 12 month net return from a uniform vintage portfolio – AltFi Data UK Lending Returns Index

 

 

Introducing ‘loss coverage’ as a standardised measure of risk

AltFi Data has introduced ‘loss coverage’ analysis to allow investors to appraise risk adjusted return. This measures the multiple by which interest income covers losses and provides a consistent measure to compare the risk inherent in the return being delivered.

 

Risk Management

AltFi Data provides historic measures of Probability of Default and Loss Given Default. These marks can be extracted for all asset types (platform, risk grade, borrower type, vintage) and mapped to a client portfolio to provide an assessment of Expected Loss.

 

 

Rupert Taylor – Founder and CEO of AltFi Data – commented:

“Alongside an improved user experience and better visualisation AltFi Data Analytics 2.0 includes new functionality that removes a number of potential barriers to the adoption of loan assets by institutional investors.”

 

He continued:

“Investors now have a reliable measure of risk adjusted return, based on a complete lending track record, together with the marks and metrics required to assist with the challenges of risk management and portfolio valuation.”