Patent ID: 7447652

Claim:
A method for analyzing a deal that includes portfolios of distressed financial assets including loans or other financial instruments, using a network-based system including a server system coupled to a centralized database and at least one client system, said method comprising the steps of: generating a cash flow data table from various data sources, the data table including data relating to each asset included within the portfolios, the server system generates the cash flow data table; importing cash flow data from the data table into a cash flow model; automatically segmenting cash flow data by potential asset disposition types by using the server system to apply the cash flow model, each asset having a potential asset disposition type assigned thereto; determining a cash flow timing and an expense timing for each asset included within the portfolios based on the potential asset disposition type assigned thereto, the determination of the timings performed using the cash flow model and the server system; determining cash flow projections for the deal based on the determination of cash flow timings and expense timings for each asset included within the portfolios; performing sensitivity analysis using a Monte Carlo Simulation Model to provide different scenarios based on a variety of assumptions retrieved from the database including expected timing of recoveries, amount of recoveries, interest rates, and expenses, the server system uses the Simulation Model to generate a probabilistic distribution of a possible value of the deal including risk associated with uncertainty of future events; and exporting cash flow projections into a pre-determined format to develop financially attractive bids for the deal that takes into account a variety of foreseeable risks.