ARLE is AgFe's proprietary tool written in C++ for generating representative lines from a large, multi-variant data-set using our own algorithms to maximise the preservation of information content whilst providing user flexibility.
AWE and ACE are scripting tools developed by AgFe to facilitate fast and error-free generation of liability and asset models for use in structured finance analysis. Models can be compiled to standard Excel or C++.
The Platform aggregates the data flow of a variety of portfolios through an easy-to-use interface. Users can analyse and visualise the data (e.g. stratification reports) as well as perform valuation analysis under a variety of custom scenarios and across numerous asset classes, including performing and non-performing mortgages, leases and loans, both secured and unsecured.
Using 30 years of historic information on aircraft values and lease rates, AgFe’s Future Value Generator projects the probable distribution of future aircraft values for a specific aircraft type given its historic volatility and a user-specified depreciation rate.
AgFe’s R/A Yield Calculator estimates the net yield (after losses) for an aircraft secured debt instrument given the amortisation profile of the debt, the probable range of future aircraft values as provided by AgFe’s Future Value Generator and a user-specified credit rating of the airline obligor.
AgFe provides investors with monthly mark-to-market reports for their portfolios referencing changes in the relevant capital markets benchmarks that affect the on-going value of a position, including yields on government, corporate, secured and unsecured debt instruments, as well as foreign exchange spot and forward rates.
AgFe prepares quarterly reports for investors which re-underwrite their investments from a risk perspective with reference to changes in the value of the collateral, credit of the obligors and the market environment for the asset class more broadly.
AgFe has analysed Enhanced Equipment Trust Certificates (EETCs) over two different periods to determine their cumulative losses and corresponding yield reduction compared to comparable unsecured corporate bonds and leveraged loans. Over both 1994-2007 and 2003-2015, EETCs have provided a net yield approximately 50-300 basis points higher, depending on the rating, alternative asset and time period.
Golbeck and Linetsky developed a theoretical model for the unified valuation of all forms of financing secured on real assets. AgFe has applied the approach to aircraft, and we use the resulting models to evaluate secured balloon debt obligations and end of lease residuals.