Advisory Services
Portfolio Valuations

Orion First Financial, LLC prepares portfolio valuations for either buyers or sellers of lease portfolios. The most common method of evaluating a portfolio is discounting the expected cash flows. Initially, a cash flow analysis is prepared based on the scheduled rentals and residuals within the portfolio. The overall portfolio risk is evaluated taking into consideration the equipment, geographic and SIC (nature of business) concentrations. Additional consideration is given to how the leases were originated and underwritten. Payment performance, early termination rates and loss data are compiled and further analyzed. Ultimately this information is used to prepare several expected sets of cash flows which are then discounted.

Credit/Loss Analysis

Orion First Financial, LLC can analyze historical losses in a portfolio and use these to estimate remaining losses within the portfolio. The analysis is prepared by segmenting the portfolio into vintages and then comparing the accumulated losses to the original equipment cost within each vintage. You would expect to find higher accumulated losses on older vintages and lower accumulated losses on younger vintages. This information is used to create an expected loss curve that is then used to estimate the remaining losses in each vintage.

Due Diligence Support

Orion First Financial, LLC supports buyers of portfolios by providing due diligence support when they are purchasing portfolios. The company has experienced staff and consultants available to evaluate credit underwriting policies/procedures and review files to determine the seller's level of compliance.

 

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