Recognition & Measurement

Model Methodology

ValuCast™ calculates the total fair value adjustments by explicitly applying a credit loss assumption and calculating an additional fair value adjustment mark which contemplates interest rate and liquidity assumptions under an “exit price” application as outlined in ASC 820. Our proprietary software achieves this objective through individual loan cash flow projections that can be generated for the entire portfolio within seconds allowing the user maximum transparency and flexibility.

Dynamic Assumption Features

Assumptions including default and loss rates, prepayment speeds, etc. can be applied based on bank specific inputs and calculations or by utilizing our proprietary index developed through valuing billions of dollars in loans with calculations performed at a loan level in an efficient manner.

Apply market rate assumptions based on a dual factor approach considering a “build-up” method utilizing various premiums contemplated in your loan pricing model and market rate assumptions based on recent issuances/market offering rates.

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Valuant empowers management teams with the analytical tools and services needed to maximize profitability in the complex world of financial modeling.