Structured Finance Software and Securitization Platform

Structured finance is the design of tailored financing arrangements for complex funding, liquidity, risk-transfer and regulatory requirements. Common structures include asset-backed securities (ABS), mortgage-backed securities (MBS), residential mortgage-backed securities (RMBS), commercial mortgage-backed securities (CMBS), covered bonds, ABCP and warehouse facilities.

Structured finance software supports the design, administration and reporting of complex financing arrangements by bringing asset data, eligibility testing, cash-flow modelling, transaction processing, accounting and regulatory reporting into controlled workflows. TAO Solutions applies these capabilities across asset-backed securities, mortgage-backed securities, ABCP, covered bonds, warehouse facilities and other structured finance transactions.

Evaluating software? Use our structured finance software RFP evaluation guide and explore SecureHub for end-to-end securitization administration.

How Does Structured Finance Software Support Securitization?

Structured finance commonly combines asset pooling, separation of collateral risk from the originator, and tranching of liabilities. In a traditional securitization, cash flows from an underlying pool service securities with different risk positions. TAO Solutions provides technology for issuers, originators, lenders, trustees and investors to administer the data, calculations, controls and reporting around these transactions.

Securitization (securitisation) pools financial assets such as loans or receivables and uses their cash flows to service securities issued to investors. Payments depend on the performance of the underlying exposures and the priority rules defined in the transaction documents.

Tranching creates classes with different payment priorities and risk profiles. Cash flows and losses are allocated through the transaction waterfall. Credit enhancement may include subordination, overcollateralization, reserve accounts or excess spread, depending on the structure.

Structured finance software translates transaction documents into repeatable calculations, controls and reporting workflows. It can support eligibility tests, waterfalls, triggers, settlement, accounting and reconciliations while maintaining an audit trail.

TAO Solutions supports these functions across securitization, ABCP, covered bonds and warehouse facilities, with configurable workflows for different jurisdictions, asset classes and participant roles.

Why Institutions Use Structured Finance Software

Institutions use structured finance to diversify funding, manage liquidity or transfer credit risk, subject to the structure, market conditions and regulatory treatment. Software does not create those outcomes by itself; it helps teams administer the underlying data, calculations, controls and reporting consistently.

In a traditional securitization, cash flows from a pool of loans or receivables service securities with different risk positions. For originators, issuers, lenders, trustees and investors, the operational challenge is keeping asset data, eligibility tests, waterfalls, notices, accounting and reporting aligned with transaction documents.

The types of structured finance transactions supported by TAO Solutions software include:

• Asset-backed securities (ABS) represent pools of assets that are collateralized by the cash flows from a defined pool of underlying assets, such as auto loans, credit card receivables or equipment leases.
• Mortgage-backed securities (MBS) are backed by the principal and interest payments from a pool of mortgage loans.
• Residential mortgage-backed securities (RMBS) are backed by mortgages on residential properties, typically single-family homes and apartments, both owner-occupied and held for investment (buy-to-let) purposes.
• Commercial mortgage-backed securities (CMBS) are backed by loans secured against commercial properties, such as shopping centres or office complexes.
• Commercial real estate collateralized debt obligations (CRE CDOs) are collateralized debt obligations backed primarily by commercial real estate loans.