ABOUT US

 

Order of Magnitude Advisors LLC was spun-off from Blue Elephant Solutions in 2022 as a consulting and advisory business. The business was formed to deliver risk management and funding optimization services to clients through a broad-based and proprietary analytical framework. MAGNITUDE focuses primarily on risk underwriting analytics for loan originators and also offers broader advisory services across the entire spectrum of funding & capital raise, origination, servicing and due diligence. The Order of Magnitude approach has broad applications across loan valuation, return forecasting, portfolio optimization and risk management:

LOAN VALUATION

  • Single loan selection

  • Equity tranches of securitizations

  • Quant-designed credit boxes

  • Seasoned & distressed loan pools.

PORTFOLIO OPTIMIZATION

  • Systematic portfolio optimization

  • Relative value arbitrage

  • Sensitivity to model uncertainty

  • Integration of forward commitments, underwriter volumes and cash drag

RETURN FORECASTING

  • Systematic beta forecasts

  • Underwriter idiosyncratic alpha

  • Next-Gen Discount Rate Model (loan-level seasoning adjusted risk premium)

RISK MANAGEMENT

  • Scenario and stress analysis

  • Asset-level risk exposures

  • Correlation

  • Expected/unexpected loss