What We Do
What We Do
Structuring and Capital Raising
Diverse Asset Classes Covered, Ranging from Traditional to Specialized:
- Traditional Assets:
- Auto Loans and Leases
- Subprime Auto Loans
- Credit Card Receivables ( Bank & Charge Card, Retail Private Label)
- Equipment and Machinery Leases
- Fleet Leases
- Trade Receivables
- Esoteric (Non-Traditional) Assets:
- Transportation: Aircraft Leases & Loans, Engines, Railcars, Containers
- Digital Infrastructure: Cell Phone Towers, Datacenters, Fiber Network
- Insurance Premium Finance
- Intellectual Property: Music, Drug and Movie Royalties
- Rate Reduction (Cost-Recovery) Bonds
- Solar (Commercial & Residential)
- Timeshares
- Whole Business
- Other Specialty Finance
- Infrastructure Assets:
- Ports, Airports
- Water Utilities
- Railroads and Railcar Leasing
- Other Infra-like Assets
- Innovative Structures:
- Continuously exploring new asset classes
- Customizing structures to suit investor preferences
- Incorporating emerging asset types into securitization models
- Tailored Solutions:
- Adapting to market demand and investor appetite
- Designing securities for risk mitigation and yield optimization
- Optimal Asset Allocation:
- Identifying and selecting assets that align with investment objectives, and risk tolerance
- Implementing fair and transparent asset selection criteria based on credit quality, liquidity and suitability for the contemplated offering
- Defining thresholds and concentration limits to diversify risk across asset classes, industries and geographic regions
Rating Agency Process
Facilitating Credit Ratings Process
We understand the importance of credit ratings in validating asset quality and enhancing investor confidence. We are committed to supporting clients throughout the rating agency process, ensuring a smooth and transparent evaluation of securitized assets. Here’s how we can assist:
- Collaborative Engagement: Work closely with clients to prepare comprehensive documentation and data submissions required by rating agencies
- Strategic Guidance: Provide strategic guidance on asset selection, structure optimization, and risk management strategies to align with rating agency criteria
- Facilitating Due Diligence: We facilitate due diligence processes to ensure transparency and thoroughness in asset evaluation, addressing rating agency inquiries effectively
Rating Agency Methodologies
Understanding rating agency methodologies is crucial for optimizing asset portfolios and achieving desired credit ratings. We offer insights into rating agency methodologies and provide support in replicating these methodologies as needed:
- Methodology Overview: Explain rating agency methodologies, including criteria for assessing asset quality, credit risk, and performance metrics.
- Customized Solutions: Tailor asset portfolios to align with rating agency criteria, optimizing structures to enhance credit ratings.
- Replication Support: Assist clients in replicating rating agency methodologies, leveraging data analytics and scenario modeling to simulate rating outcomes.
- Riks Mitigation Strategies: Implement risk mitigation strategies to address rating agency concerns and enhance creditworthiness
Empowering Clients with Knowledge
Our goal is to empower clients with comprehensive knowledge and resources to navigate the rating agency process effectively, driving value creation and investor confidence:
- Education and Training: Provide educational resources and training on rating agency methodologies, enabling clients to make informed decisions and strategic adjustments
- Market Insights: Offer timely market insights and industry trends to inform asset selection and portfolio optimization strategies aligned with rating agency expectations
Cashflow Modeling & Quantitative Analysis
Leveraging Advanced Analytics
In the complex landscape of asset-backed securitizations (ABS), quantitative modeling and cash flow analysis play a critical role in assessing asset performance, optimizing structures, and enhancing investor confidence. Our team specializes in leveraging advanced analytics to drive informed decision-making and maximize value creation. Here’s how we approach quantitative modeling and cash flow analysis:
Asset Performance Assessment
- Data-Driven Insights, utilizing robust data analytics to evaluate historical asset performance and forecast future cash flows
- Scenario Analysis to assess sensitivity to market conditions and identify potential risk factors
- Default Probability Modeling, employing statistical modeling techniques to estimate default probabilities and loss severity, enhancing risk management capabilities
Cash Flow Forecasting and Optimization
- Dynamic Cash Flow Modeling that integrates asset-specific variables, payment structures, and macroeconomic factors
- Waterfall Analysis to simulate cash flow distribution across ABS tranches, and optimize payout structures
- Stress Testing and Sensitivity Analysis evaluating resilience under adverse scenarios and ensure transaction robustness
Structuring and Risk Mitigation
- Tranche Optimization based on cash flow projections and investor preferences, aligning risk and return profiles effectively
- Credit Enhancement Strategies to mitigate credit risk and enhance overall transaction creditworthiness
- Alignment with Investor Objectives optimizing funding costs and enhancing market acceptance
Client-Centric Approach Empowers Informed Decisions
We partner with clients throughout the quantitative modeling process, fostering transparency and knowledge sharing. Our solutions are tailored to client-specific needs and transaction requirements, delivering actionable insights and strategic recommendations. Our quantitative modeling and cash flow analysis capabilities empower clients to make informed decisions, optimize asset-backed securitizations, and unlock value in dynamic financial markets.
Term Sheet Drafting
Negotiating with lenders can be complex. At 7MileFS, we offer specialized services in termsheet drafting and negotiation dedicated to safeguarding our clients’ best interests and ensuring favorable outcomes in transactions.
We understand that every transaction is unique. Our focus is on structuring terms that accurately reflect the underlying assets, cash flow mechanisms, and investor preferences.
Our team collaborates closely with clients to draft comprehensive term sheets that reflect their specific needs and objectives.
We prioritize clarity, accuracy, and legal compliance to establish a solid foundation for negotiations.
Investor Presentations & Marketing Materials
At 7MileFS, we specialize in developing compelling investor presentations and marketing materials tailored to asset-backed securities (ABS), designed to showcase the unique value proposition of your investment offerings. Our strategic approach combines industry expertise with creative communication strategies to engage investors and drive successful capital raises.
Customized Content Creation through developing tailored content that highlights key investment metrics, including asset performance, cash flow projections, expected returns, company profile, market dynamics
Visual Storytelling through engaging visuals such as charts, graphs, and infographics to illustrate asset performance and transaction dynamics
Translate Complex Financial Data into clear, impactful visuals that enhance investor understanding and engagement
Strategic Messaging through crafting a compelling narrative that communicates the investment thesis and value proposition of your ABS offerings
Roadmap to Securitization
You’re poised for growth but may lack the necessary tools to leverage your assets for strategic financing. We specialize in empowering growing businesses, providing the knowledge and support needed to unlock capital through securitization.
Our educational services help you understand what securitization is and how to leverage your business assets to access capital efficiently using this technique.
We provide a personalized roadmap aligned with your business objectives, outlining practical strategies to achieve successful securitization and diversify your funding sources.
Partner with us to accelerate your business growth and capitalize on your assets effectively. Our educational resources and personalized guidance will empower you to navigate the complexities of securitization and achieve your financing goals.