Standard & Poor's SPIRE®. It's like having your own Standard & Poor's Cash Flow Analyst
The SPIRE® Cash Flow model analyzes the effect of variable interest rates on both assets and liabilities associated with structuring residential mortgage backed securities. It can ascertain if the available funds derived each month from a loan or pool of loans, given Standard & Poor's rating criteria, are sufficient to satisfy a capital structure's bond liabilities.
The SPIRE® Cash Flow model can be used to verify and confirm that the rated bond classes of a structured deal will receive timely interest and principal payments, despite any losses and other stresses incurred by the collateral pool associated with a desired Standard & Poor's rating.
The model uses advanced technology to allow a user to automatically solve for the most optimized capital structure and over-collateralization target, given the cash collections from the asset pool, Standard & Poor's criteria assumptions and the structured bond liabilities.
As of July 9, 2008, SPIRE 3.1.3 is available for download.
A loan level credit model to analyze the risk of residential mortgage loans, also used to determine the foreclosure frequency, loss severity and credit enhancement levels required for securitization.
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