Orion prepares portfolio valuations for either buyers or sellers of 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 payments and cashflows within the portfolio.  The overall portfolio risk is evaluated taking into consideration the collateral, geography and industry concentrations.  Additional consideration is given to how contracts 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 cash flow projections based on different risk scenarios which are then discounted to calculate the present value of the portfolio.

Credit/Loss Analysis

Orion analyzes historical losses to estimate future losses within portfolios.  The analysis is prepared by segmenting the portfolio into vintages and comparing the accumulated losses to the original equipment or acquisition cost within each vintage.  Higher accumulated losses usually are associated with older vintages and lower accumulated losses on younger vintages. This information is used to create an expected loss curve to estimate the remaining losses in each vintage.

Due Diligence Support

Orion provides portfolio buyers with due diligence support.  Orion has experienced staff and consultants available that can also evaluate credit underwriting policies and procedures and review files to determine the seller's level of compliance.