Software

Software Overview Cash Flow Structure Wizard Cash Flow for Tobacco

Cash Flow for Tobacco

Cash Flow for tobacco securitization structures and demonstrates rating agency compliance for bond issues secured by and payable from revenues derived from the Attorneys General Master Tobacco Settlement Agreement of November 23, 1998 (“Tobacco Bond Application”). The software contains a complete model of revenues, liabilities, and default provisions associated with tobacco bonds. The application itself sits atop of cfX’s generic, market-tested cash flow and structuring engines, enabling five essential functions:

1. Model different “cigarette scenarios”, each a combination of:

A time series of historical and projected aggregate U.S. cigarette shipments
A time series of historical and projected inflation rates
A time series of historical and projected individual market shares of OPMs, and aggregate market shares of early signing SPMs and late signing SPMs
A time series of historical and projected aggregate OPM operating income
Assumptions about OPM bankruptcies
Assumptions about which states have enforceable Model Statutes

2. For each cigarette scenario, generate the tobacco payments at the national level, and determining the allocation to a particular bond issue

3. Size a bond issue for a particular cigarette scenario

4. Show the performance of the bond issue over a broad range of user-specified or randomly computed scenarios, computing the yields, flagging scenarios that fail requirements (e.g., entering default or using the reserve), and ordering the cash flow projections by some “goodness” criterion

5. Create certain standard reports.