Indirect Loan analysis by HACKERS Leon Savvas Michael
Indirect Loan analysis by HACKERS Leon Savvas Michael Theriot Dasha Priklonskaya Date: May 2, 2000
30 day Delinquency Distribution in $
Relative 30 Day Delinquency
60 day Delinquency Distribution in $
Relative 60 Day Delinquency
90 day Delinquency Distribution in $
Relative 90 Day Delinquency
Bottom Line B tier is clearly the most delinquent: – At least 60% of 30, 60, and 90 day delinquency comes from the B customers – At least 60% of $ delinquency for B customers is a 30 day delinquency – On the delinquency graphs B curve is always higher than A curve
New Loan Origination
Prepayment
Profit
Cumulative Charge-offs
Bottom Line • At least 60% of New Loan Origination, Prepayment and Profit come form A customers • Both A and B customers tend to pay off their loans. However, most of the charge off volume come from the B customers. Asymptotically B customers charge offs are 3 times higher than A customers charge offs
Charge-offs
Bottom Line • B and A customers have a similar charge off pattern, but on different scales • B customers have greater charge off rate than A customers
Conclusion • Most of the delinquency and charge off volume can be explained by A and B customers • A and B have similar patterns. However, numerically B always underperforms A • Need to review B tier policies • B tier has good Cash Flows • B tier is less reliable
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