Does anyone know a way to model a portfolio of performing loans made for auto finance? It's easy enough to model repayments for a single loan using NPV but are there any conventions for modelling multiple loans, the number of which changes from month to month owing to new loans, defaults, early payouts and going full term. By way of stabilising some variables, it's all right to assume, for example:
1. average loan size of $20k
2. interest rate 10%
3. term 60 months
4. balloon/residual $5k
5. average early repayment term 32 months
Or does anyone know a good reference that deals with modelling structured finance including securitization?
Thanks
1. average loan size of $20k
2. interest rate 10%
3. term 60 months
4. balloon/residual $5k
5. average early repayment term 32 months
Or does anyone know a good reference that deals with modelling structured finance including securitization?
Thanks