A collateral read is a structured review of the matters backing a loan or facility, checking each against the eligibility criteria and re-scoring its distributions at a stated date. It tells a lender what the pool is worth now.
A lender relying on legal receivables needs more than a borrower's certificate. The read opens the file, confirms the matter exists and is what it was said to be, applies the exclusion criteria and re-estimates outcome and duration with current information.
The result feeds the borrowing base and the covenant tests. Because the collateral changes with procedural events, the read is repeated on a cadence and when a material event occurs.
A collateral read is not a legal opinion on the merits of each case. It is a measurement of the collateral's current position and distribution.
Working a file that turns on this term?
Working through a diligence process?
Institutional partners evaluating a position against this platform's outcome and duration models are welcome to reach out directly.