Welcome to The S-Curve
Now you will be able to receive the latest announcements, product updates, and our insights on the mortgage market in real time.
The name of the blog, the S-Curve, is a reflection of our logo and the central feature of our prepayment model. S-curves are seen in nature in many phenomenon, from population growth to prepayment and default models. Our first S-curve, in the early 1990s, used the arctangent function, then piece-wise linear functions, and evolved over time to be more complex and vary by FICO, loan size and LTV. This evolution encapsulates both the timeless nature of fundamental relationships and constant innovation to describe them better over time.
We hope you find the information useful and we look forward to your feedback.
-
Introducing a New Interface to Navigate Our Website with EaseNews
We proudly launched our new website on November 13th. As you familiarize yourself with the new look of ad-co.com, you will come to know the many new offerings we provide. Along with the new website, we have organized our products as a menu of models and applications for a wide range of investor appetites. Let us review the menu of our product offerings.
Dynamic Models
LoanDynamics (LDM) is the credit modeling solution you need. Our behavioral model helps you manage interest rate and credit risks in single family, multifamily, and auto loans by forecasting prepayments, delinquencies, defaults, and loss probabilities.
RiskValDynamics (RVD) is our flexible valuation engine formerly known as OAS Subroutines. It combines LDM, our suite of MacroDynamics models, and our original, highly-efficient cash-flow engines.
MacroDynamics (MDM) is our suite of macroeconomic models including InterestRateDynamics, HomePriceDynamics, and UnemploymentDynamics.
Applications
Kinetics is our new modular platform, designed to deliver the full suite of our models and analytics with the option to license only the tools you need. LoanKinetics , our multi-functional whole loan application, joins the Kinetics platform, along with MSRKinetics (MSRK), our new web-based offering focused on assessing MSR risk, and PoolKinetics, a module for pay-up valuation of agency pools.
RiskProfiler (RP) is our complete valuation and risk assessment solution that covers all asset classes modeled by AD&Co: MBS and ARM pools, loans and their derivatives (IO, PO, MI, MSR), structured securities (CMOs), and hedge instruments. All inputs and outputs are stored in a SQL database.
We hope the new interface helps you learn more about all that Andrew Davidson & Co., Inc. can offer during these unprecedented times.
Happy Holidays and Stay Safe – Ashlea Bonds, Marketing
-
Andrew Davidson & Co., Inc.’s LoanDynamics Models Empowers Fite Analytics’ MBS Analytics ServiceNews
Andrew Davidson & Co., Inc. (AD&Co), is proud to support Fite Analytics’ innovative cloud-native Mortgage-Backed Securities Analytics Service. The Fite Analytics solution incorporates AD&Co’s LoanDynamics models that provide forecasts of voluntary prepayments, defaults and losses that drive risk analytics across the mortgage-backed securities market with comprehensive coverage. To read the full press release click here.
-
Introducing the New AD&Co WebsiteNews
We are thrilled to announce that Andrew Davidson & Co., Inc. has launched a new look for ad-co.com. Some of the exciting new features of this site include:
-
A dynamic homepage highlighting the firm’s latest innovations, AD&Co client benefits, announcements, and Diversity, Equity and Inclusion efforts.
-
Our new blog titled The S-Curve that offers our latest announcements, product updates, and insights on the mortgage market in real time.
-
An enhanced solutions-focused structure organized by I Work In (includes industry and investment categories), Tools (product pages), Consulting, Insights (announcements and literature), and Client Portal (downloads portal and model resources).
-
About AD&Co includes Our Company and Diversity, Equity, and Inclusion sections which offer a look into the firm’s foundation, culture, and practices.
Please take the time to:
-
Register to access the new website. You will be prompted to set up a new password.
-
Kindly verify your contact information on your User Dashboard. If you need to update your information, please contact us.
Finally, we’ve updated our Terms of Use and Privacy Statement. You will be asked to accept them when you log in for the first time.
Please let us know feedback or concerns to ensure we continue to serve you well. Thank you.
-
The S-Curve Archives
-
ThoughtsAs providers of mortgage models for financial institutions, Andrew Davidson & Co., Inc. (AD&Co) enables clients to validate their use of our models and offers documentation describing the conceptual framework of the models, back-testing results, and sample forecasts under a variety of economic conditions. We also work with analytics providers who have incorporated our models to ensure that the models works as intended.
-
ThoughtsWe’re excited to announce two new Quantitative Perspectives that provide in-depth insights into current market trends and advanced valuation techniques. These papers offer valuable information for mortgage market participants and those involved in credit risk transfer transactions.
-
EventsAndrew Davidson & Co. Inc. (AD&Co) proudly sponsored the Information Management Network (IMN)’s 10th Annual Mortgage Servicing Rights (MSR) Forum, held November 21 - 22, 2024 at the New York Marriott at Brooklyn Bridge.
-
PodcastTune in to Michelle Stepien Breier's interview with Alex Levin & Matteo Caracciolo-King as they discuss their latest Pipeline article “AD&Co Updates its Home Price Index Model.” The interview highlights key points from the article as they share recent updates to the HPI3 model.
-
ThoughtsWith the increasing volumes of Synthetic Risk Transfer (SRT) and Credit Risk Transfer (CRT) along with the discussion of BASEL III, we thought it would be useful to re-issue our comment letter to FHFA on the capital treatment of Credit Risk Transfer.
-
PodcastRecently, senior credit modeler, Daniel Swanson had the pleasure of speaking with Rob Kessel from the Panoramic Capital Academy podcast titled, “Modeler’s Perspective on Prepayment Modeling.” T
-
ThoughtsThe earliest paper we found examining the impact of climate risks on house prices was from 2017, which found a relationship between elevation/sea level rise and house price differences.[1]
We built our climate-conditioned HPA model in 2022 based on the idea that an increase in insurance costs would impact house prices (something we had not studied yet) in the same way that an increase of the same size in mortgage rates would impact house prices (something that we were quite familiar with).
-
NewsAndrew Davidson & Co., Inc (AD&Co) is pleased to announce a new alliance with Mortgage Capital Trading, Inc. (MCT), a leading provider of mortgage capital market solutions.
-
EventsAt Andrew Davidson & Co., Inc. (AD&Co), our dedication to Diversity, Equity, and Inclusion (DEI) has been a cornerstone of our values. We established our DEI Committee in 2020, following the tragic murder of George Floyd. Despite the evolving landscape, including the recent U.S. Supreme Court decision impacting affirmative action in higher education, we remain steadfast in our commitment to fostering an inclusive environment that strengthens both our employees and the company.
-
PodcastTune in to Eknath Belbase's interview with Michelle Stepien Breier & Richard Cooperstein as they discuss their latest Pipeline article “Improving Mortgage Data: A Data Exchange for the Mortgage Ecosystem.”