Open Source Investor Services

About Us

We empower people to trust their risk decisions. We make complex credit risk analysis easy to understand at all levels. It is clear for the board members of large international lenders but also easily understandable for smaller loan investors, thereby helping them to act as their own credit rating agencies. We do the heavy data lifting and create complex self-learning models behind the scenes, so our system users can be masters of their own destiny. We enable them to run their own stress scenarios, understand risk, and calculate the value of their loans.

Solutions

OSIS develops software, provides SAAS services and consultancy to lenders and investors in loans in the EU, Australia and North America.

Data Curation

Eversince its inception, OSIS has been very active in providing data quality solutions to financial institutions. We provide services to originators and investors on evaluation, validation and monitoring of data quality at loan level. We apply automatic checks on data formats, uniqueness of loan identifiers, consistencies within and between loans in the same pools and consecutive loan reports.

Credit Models

Credit risk analysis is complex since data is always scarce and not fully representative of the future. As a result, no single data set will suffice and multiple sources of information (ranging from internal data to expert input) are needed. A dedicated statistical framework is required to coherently combine these multiple sources and an accomplished analyst will need to account for uncertainty in the model inputs.

Investor Due Diligence

The EC Proposal 472 was released on 30 September 2015 and concerns Simple, Transparent, Standardized (STS) due diligence and transparency concerning securitisation transactions. The EC proposal is mainly aimed at originators, but it is important to note that investors are required to use the information available in due diligence and on-going risk surveillance.

Valuation Reports

We offer fair market valuation service on Dutch Residential mortgages portfolios on an annual, quarterly, monthly or even daily basis. This valuation is in accordance with IFRS 13, using loan level data provided by the originators, aiming to meet both IFRS and prudential requirements. The calibrated risk parameters we propose are sensitive to borrower and loan characteristics as well as conditional upon forward-looking macroeconomic scenarios.

Latest Updates

25 November 2019

SNS Investor Appeal Valuations Provided by OSIS

by Jeroen Batema

In 2013 the Dutch State acquired SNS Bank as a result of bankruptcy and decreed certain creditors be expropriated. In response to this decree, several investors appealed to the highest Dutch court in Amsterdam. The court requested 3 experts provide their opinion concerning the valuation of SNS bank as of 31 January 2013. OSIS was called upon to calculate the valuation of the residential mortgage portfolio and submit a report which has recently been published by the court in Amsterdam.

The valuation was based on individual information concerning the 539,805 loan parts held by 279,641 borrowers. The valuations were done on a loan by loan basis in value of the macroeconomic situation in January 2013 and by stressing the portfolio in function of the scenarios valid at the time of the bankruptcy. This detailed analysis and report produced by OSIS can be found here.

The outcome of the lawsuit is still pending.

02 July 2019

EBA Basel Assessment Sees Impact Driven by Large Banks

by Jeroen Batema

The European Banking Authority (EBA) presented the results of its Basel III implementation assessment in a public hearing on 2 July. This includes a quantitative impact study (QIS) based on data from 189 EU banks, and a comprehensive set of policy recommendations in the area of credit and operational risk, output floor and securities financing transactions. This work, which responds to a Commission's call for advice, shows that the full implementation of Basel III in the EU, under the most conservative assumptions, increases the weighted average minimum capital requirement (MRC) by 24.4%, leading to an aggregate capital shortfall of EUR 135.1 bn for large global banks. The impact on medium-sized banks is limited to 11.3% in terms of MRC, leading to a shortfall of EUR 0.9 bn, and on small banks to 5.5% MRC with a EUR 0.1 bn shortfall. The EBA will publish the full report by the end of July (for the full article, we refer you to the following link).

The capital shortfall can be addressed in many ways. Banks can issue new shares, decrease their lending business or try to use the balance sheets of third parties through securitisation. The latter can be a cheaper solution than the issuance of new capital and supports continuation of lending. OSIS did a research in consultation with members of the IACPM on the use of synthetic securitization. In this research, we have seen that asset classes like SME, Commercial Real Estate and Large Corporate lending in several jurisdictions would be an interesting alternative for capital issuance to decrease the capital shortfall. OSIS can support both banks and investors to analyse the value of these trades from both perspectives.

17 May 2019, Berlin - IACPM's Annual Spring Conference

Assessing Capital Efficiency under Different Approaches

by Jeroen Batema

Banks have become less capital efficient because of TRIM and Basel 4, resulting in competition from parties with direct capital markets funding. Credit Portfolio Managers are looking for ways to deal with this. Synthetic securitization is a measure for banks to do the same but they are complex to execute so how to find out when it is economically interesting?

At the event OSIS chaired a panel discussion with a bank (Santander) and an investor (PGGM) around the theme CPM and Risk Mitigation. As an introduction, results were presented from research on performance of various asset classes against different regulatory regimes and macroeconomic scenarios. Participants were interested in answers to the key question: Which asset classes in which countries offer best perspectives for a Synthetic Seduritization?

For more information, please contact us.

26 April 2019, Vienna - Global Credit Data (GCD) European Conference

Standardized Data for Non-Performing Loans (NPLs)

by Stefan Pieters

NPL securitization becomes more and more frequent. Italy, Ireland and Portugal lead the way, new markets (e.g. Spain and Greece) are coming up. Banks in main NPL markets are underrepresented in GCD in terms of members as well as availability of data. NPL market is a supervisory priority and EBA is committed to enhancing the data infrastructure of NPLs.

The event, where OSIS hosted an interactive session, attracted member banks from all over Europe. Next to developments in the NPL securitizations market OSIS commented on the EBA NPL data templates in comparison to data pooled by GCD. Participants were interested in answers to the key question: How can GCD data help members to meet data requirements of NPL and attract new members in Southern Europe?

For more information, please contact us.