Deutsche Bank (DB) revealed two analytic models to more than 310,000 subscribers of the Bloomberg Professional Service on Monday.
The Deutsche Bank Commercial Mortgage Backed Securities Credit Model and Deutsche Bank Mortgage Prepayment Model will help investors evaluate securities in the private agency mortgage backed securities market and the agency mortgage market.
“We’re excited about working with Bloomberg to provide our expertise in commercial and residential analytics to a significant worldwide audience,” Head of MBS and Securitization Research Steven Abrahams at Deutsche Bank said.
The Deutsche Bank CMBS Credit Model will allow investors to estimate the overall value of commercial mortgage securities and analyze loan portfolios. This is the first independent CMBS model on the Bloomberg Professional Service.
“The Deutsche Bank CMBS Credit Model is a valuable analytic tool that leverages our expertise and innovation in commercial real estate,” Global Head of CRE Debt Research Harris Trifon, at Deutsche Bank said.
Users can access the proprietary credit model through CMBS analytics, which is powered by Bloomberg cash flows. Best and worse case scenario models can be selected from a drop down menu on analytics.
Investors can also apply scenarios on a loan level basis and asses the impact on bond cash flows. The CMBS model reflects views on a combinations of factors including financing conditions, borrower behavior servicing standards and commercial real estate fundamentals.
The Deutsche Bank Mortgage Prepayment Model is an agency MBS prepayment model that allows analysts, portfolio managers and traders to better evaluate bond value and risk.
The prepayment model also incorporates the latest changes to government refinance programs, which provides accurate estimates of cash flows. The model is incorporated into Bloomberg’s analytical tools and application program interface.
“We’re pleased to integrate Deutsche Bank’s models with our cash flows and analytics so clients can better assess financing conditions impacting the mortgage market,” Global Head of Structured Products Russel Parentela of Bloomberg said.
