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MSRKinetics (MSRK) is our first new modular offering under the Kinetics umbrella. It evaluates mortgage servicing rights (MSR) and projects the impact of hedging with mortgage-backed securities (MBS) and TBAs.

MSRKinetics is equipped with other useful functions aimed at explaining the economic value of an MSR asset well beyond a single number. This includes MSR value decomposition, which quantifies the relative contribution of up to seven components of an MSR’s total value – the actual servicing fee and cost to service being just two of the components.

MSRKinetics not only quantifies rate risk factors, but also non-rate risk factors, reporting commonly ignored exposures such as model risk or housing price risk. By combining MSR assets with an MBS/TBA hedge, MSRKinetics quantifies expected returns attributable to bearing prepayment-model risk – an aspect of the servicing business that is frequently overlooked.

Finally, our proprietary and more advanced Comprehensive Capital Analysis and Review (CCAR) model allows for re-pricing MSR assets forward, along each of the required stress scenarios, but without foresight of a particular scenario’s continuation. MSRKinetics artfully restores the market conditions that would exist at each point in the future should any of the CCAR scenarios unfold.


Features and Capabilities
Robust Functionalities

MSRKinetics is powered by our LoanDynamics Model and OAS Subroutine, and integrated with an MSR-specific cash flow for the following:

  • Create and manage multiple analyses
  • Enhanced visualizations and reporting results
  • Specific cashflow engine for mortgage servicing
  • Hedging functionality for mortgage servicing
  • Global MSR costs and assumptions with ability to override

Core Asset Coverage

  • Mortgage Servicing Rights


MSRKinetics is available directly from AD&Co and can be delivered in multiple ways:

  • Desktop application
  • On-premises intranet deployment or private cloud
  • REST API for integration with proprietary systems

For questions on optimal system usage and integrations, please contact us.

Supporting Resources

  • User Guide
MSRKinetics in Action
Analysis Manager

Create and manage analyses in a web-based interface.

MSRKinetics Analysis Manager


Upload your positions and market data directly into the application. After importing, these files can be edited within the application or saved for another analysis.

MSRKinetics Inputs

Servicing Assumptions

Create MSR assumption sets and choose to apply them across the board to all loans underlying an MSR position or at the loan level.

MSRKinetics Servicing Assumptions


Decide how to quote MSR assets and choose which risk measures you need to calculate.

MSRKinetics Calculations

Generate Results

Understand value and risk with loan-level results. See valuations, OAS, OAS Duration, various yield and spread measures, equivalent prepayment rates (CPR), WAL, and sensitivities for each position.

MSRKinetics Results Value and Risk

See More Results

Generate additional reports, including portfolio-level results and MSR value decomposition. Valuations, yield, OAS, OAS Duration, sensitivities and more are reported.

MSRKinetics Summary Results

MSRK MSR Value Decomposition

Detailed Cashflow Reporting

Visualize your cashflow results with an interactive charting tool.

MSRKinetics Results Cashflows Chart