Financing
Financing instruments fund positions through secured lending, structured products, and synthetic exposure. They form the plumbing of fixed income markets -- repos provide short-term funding against collateral, structured products (CLOs, CDOs, ABS) redistribute credit risk across tranches, and total return swaps deliver economic exposure without ownership transfer. Vade's financing module is planned for future development.
What's Covered
Financing support is planned for a future release. The features listed below are under active design and will provide a comprehensive toolkit for funding, structured credit, and synthetic exposure analytics.
Key Concepts
- Repo -- a repurchase agreement where one party sells securities and agrees to repurchase them at a higher price, effectively a collateralized short-term loan
- Haircut -- the percentage discount applied to collateral value in a repo to protect the lender against price declines
- Collateral -- the securities pledged to secure a financing transaction, subject to margin calls if value falls
- Tranche -- a slice of a structured product's cashflow waterfall, ordered by seniority from senior (first paid) to equity (residual)
- Waterfall -- the priority-of-payments rule that distributes cashflows from an asset pool to tranches in seniority order
- Total return swap -- a derivative where one party receives the total economic return (coupons + price changes) of a reference asset in exchange for a funding rate
- Amortization -- the scheduled principal reduction of a loan or structured note over its life
- Securitization -- the process of pooling loans or receivables into a special purpose vehicle and issuing tranched securities against the pool
Planned Features
- Repo
- Reverse repo
- Securities lending
- CLOs
- CDOs
- ABS
- Syndicated loans
- Bilateral loans
- TRS
- Bond forwards
- Credit linked notes
Guides
No guides available yet. Guides will be added as financing features are implemented.
API reference pages will be added as financing features are implemented.