Patent ID: 8732054

Claim:
A computer implemented method of validating a model that generates a cash flow distribution using at least one processor, the at least one processor including a database and a computer platform, the method comprising: receiving, by the computer platform and stored in the database, a first set of data representative of a deal structure including a series of classes distributing cash flow from underlying collateral; determining, by accessing data in the database, whether one or more bonds is the underlying collateral; projecting, with the at least one processor, yields for the one or more bonds; calculating, with the at least one processor, an index rate scenario for bonds having a specified relationship between the projected yields and movements in one or more index rates; creating, using queries to the database, a first and a second set of cash flow values based on at least one of the deal structure, the yields for the one or more bonds, or the index rate scenario; creating, with the at least one processor, a set of first reports relating to the first set of cash flow values; creating, with the at least one processor, a set of second reports relating to the second set of cash flow values; comparing, with the at least one processor, a first cash flow value in the set of first reports to a second cash flow value in the set of second reports; and creating, with the at least one processor, a list that includes: cash flow values that differ between the first set of reports and the second set of reports by an amount greater than a predefined tolerance; cash flow values in the first set of reports that are missing from the second set of reports; and cash flow values in the second set of reports that are missing from the first set of reports.