Legacy Loan Trading

Pre-Digital

ANALYTICS

Data
Processing

Asset class
selected

Transactional
urgency reflected
in price

Analytics are run on
the loan pool to
determine value

Pricing

Portfolio carve
selected

Data standardization

MARKETPLACE

Distribution

Seller approves
broker to market
portfolio

Broker distributes
to relevant
parties

Bid

Buyer is identified
and price
negotiation begins.

Price agreed
upon

Buyer will manually review a
subset of the loan documents for
accuracy

DILIGENCE

Trade is ticketed

Deal
Agreement

Diligence

ANALYTICS

Data Processing

Asset class selected

Transactional urgency reflected in price

Analytics are run on the loan pool to determine value

Pricing

Portfolio carve selected

Data standardization

MARKETPLACE

Distribution

Seller approves broker to market portfolio

Broker distributes to relevant parties

Bid

Buyer is identified and price negotiation begins.

Price is agreed

Buyer will manually review a subset of the loan documents for accuracy

DILIGENCE

Trade is ticketed

Deal Agreement

Diligence

The whole loan trading market is illiquid

Inconsistent and time consuming transaction process

ORSNN - Today Market 1

Inability to drive liquidity across the market

Systemic inefficiency

ORSNN - Today Market 2

No proactive loan trading

Sellers and buyers miss opportunities

ORSNN - Today Market 3

No historical pricing or trade data registry (lack of transparency)

Allows for market and price manipulation, anchor of intermediary relevance for decades

ORSNN - Today Market 4

Low relative value in return for pricey commission fees

Commissions cut into trade-level economics for both buyers & sellers

ORSNN - Today Market 5

No industry-wide standardization for stratifications and analysis

Causes broker dependency or costly standalone analytics subscriptions

ORSNN - Today Market 6

No standardized ecosystem exclusive to banks

Drives dependency on intermediaries-neither broker nor institution can reach the entire market

Inconsistent and time consuming transaction process
Today market