Student loan/ solar modeling

[zhuhan930821]

Hi,
I'm a new user and just start exploring this project. My main use case would be to model student loan/ solar loan asset and ABS/ warehouse structure.

On student loan side, I would like to understand the types of curves supported (loss, status) by the project and also wondering if I could create customized ways to assign the curve and customize curve types.
On solar, is there an option to create a payment schedule and model that way instead of the amortization schedule based on rate/ term/ balance?
Would also need to compare the result to the outputs of current software in using.
Do you have suggestions on where I should start? Thanks.

[yellowbean]

Hi, @zhuhan930821

Student Loan

The engine supports student loan asset class (mostly, while left out some minor features like forebearance/deferment period directly ; or interest subsidiary like SAP), if it would make a major difference in cashflow I can add these features to the engine.

You can start with Mortgage asset type to model these loans and using the "IO/NO First N" feature to model grace period or period with capitalised interest for non-interest payment period.

For the curve side, Mortgage type here ( the one you used to model student loan ) it support curves list here , mostly CPR/CDR and recovery settings ,that shall be flexible enough to cover your cases (if not , pls let me know ) . But the engine wasn't designed to have different "status" ( forbearance/deferment/grace period ) ,simply because user can setup multiply assets and apply difference assumption with difference ways to set various assumptions to these assets. (Link)

• you can group the asset with same status ( like forbearance) to a pool group and apply assumption on pool level
• or using Tag feature to tag status to assets and setup performance assumption

Solar

What kind of Solar you were refering to ? are you trying to model cashflow from solar panel Loan (the cashflow derived by or try to model the "Yield" of solar panel ( the cashflow generated by the solar panel by selling electricity to grid ) . Both of them supports custom payment schedule .

• for generic way (solar loan) you can use https://absbox-doc.readthedocs.io/en/latest/modeling.html#projected-cashflow
• for solar panel selling to grid , you can model it with https://absbox-doc.readthedocs.io/en/latest/modeling.html#fixed-asset

Output of absbox

The cashflow outputs of absbox is dataframe if passing argument read=True. The output covers pool cashflow /fee cashflow /account flow and bond cashflow .

You can find ref here :

Tie out process

If you were trying to tie out the cashflow with other software , you can do it incremental way by

1. tie out on asset level: Model an single asset on both ,and compare the result.
2. tie out on pool level: tie out pool cashflow
3. tie out on deal level : with accounts/fees/bonds cashflow

absbox supports 3 ways above to project cashflows

I'm happy to assist if I can have more context of this modelling background.