dv01 INTELLIGENCE: Predictive Analytics for Consumer Loans

dv01 Intelligence provides predictive analytics for consumer loans, offering investors insights that are customized to their portfolios, integrated into the product, and immediately actionable.

dv01’s proprietary risk models use macro and micro insights, as well as loan level data from five major US online lenders, to predict default and prepayment risks for online loans. Our cashflow engine, built from the ground up, integrates with our risk models to power additional Intelligence offerings, such as anomaly detection and stress testing.

We designed our infrastructure for scale, allowing for unlimited third party data integrations (e.g. census, economics data, etc.), which we use to improve modeling and provide external context to individual portfolio performance.

PRODUCTS

Research reports

Gain in depth understanding into origination and performance trends

Benchmarking

Review how your cut of the pool compares to the full universe of loans

Anomaly detection

Identify under and over performing cohorts with our AI algorithm

Cashflows

Predict future returns based on prepay, default, and severity assumptions

Stress testing

Analyze how adverse economic scenarios impact marketplace asset performance

OUR MODELS

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Whole curve approach to modeling generates predictions over all future time periods

Years of credit research show that one-period transition matrix models generate compounded default curves that are not consistent with historical/empirical curves (Bluhm C and L Overbeck 2007).

One single unified model to cover all online lenders

This approach utilizes historical data from more mature lenders to infer future behavior for lenders without as long a history, while still accounting for differences between the lenders.

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Built from ground up, with careful consideration of variables and structures

Some models are built with a one-size fits all approach. dv01 models are built by domain specific experts and take into consideration unique data characteristics, such as the structure and dynamics of default and prepayment curves, to intelligently select predictive variables per model.

Based on proprietary insights from 100s of millions of data points

dv01 has access to more loan level detail than any other online lending reporting platform. Direct integration with lenders means we receive information direct from the source, and normalization and data validation processes ensure all data used for modeling is standardized and updated.

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WHY dv01?

Leader in online lending data integration and analytics, for both loans and bonds

Independent third party, focused on objective assessment of portfolio risk

Access to extensive historical data for all major lenders, covering >90% of the market

Expertise in traditional fixed-income markets, machine learning, and scalable IT infrastructure