Kinetics

LoanKinetics (LK) is our multi-functional whole loan application that evaluates legacy and newly originated residential mortgage loans. It can be used to project credit performance, assess value (using multiple approaches), and perform loan loss analysis for reserving and understanding attribution.

LoanKinetics is available through an Excel interface, an executable that allows integration into a proprietary system, and the new LoanKinetics Module on the Kinetics platform.

MSRKinetics (MSRK) is the first of our new Kinetics offerings focused on assessing MSR risk. It evaluates mortgage servicing rights (MSR) and projects the impact of hedging with mortgage-backed securities (MBS) and TBAs.

PoolKinetics (PoolK) is our new modular offering on the Kinetics platform. It evaluates specified agency MBS pools’ pay-ups by assessing their values relative to TBAs. Available outputs include both a “theoretical” pay-up, calculated as the value difference between a pool and a matching TBA based on the same option-adjusted spread (OAS), and a “practical” pay-up, which reflects a limited, user-defined, holding horizon.

The Kinetics LoanDynamics Modules let users forecast prepayments, defaults, and loss severities for a variety of asset types.

Kinetics currently supports single-family loans and pools, as well as multifamily and auto loans.