luxoft software development

1. For more information about Luxoft, visit
www.luxoft.com
www.luxoft.com/financial-services/
case study
Securitization System for
Global Investment Bank
Summary
13.09.2012
System is used by Securitization team of a leading global investment
bank for replenishing Collateralized loan obligations (CLO) with assets
and day-to-day servicing of already securitized assets.
uu Client: Top 10 global investment bank
uu Business Area: Credit Risk Management
uu Asset Classes: Loans
uu Technology Set: Oracle, J2EE, Spring, Hibernate, Weblogic
uu Integration: Paragon, internal security providers
uu User Profile: Front office and middle office (15+ users)
uu Geography: Germany, UK, US
uu Relationships Status: Ongoing ODC, T&M
uu Services Provided: Full cycle: Business analysis, Development, QA/Testing,
Maintenance with Production support.
uu Team Size: 10 members
uu Duration: 5+ years

2. Business Challenge
Luxoft Delivered Solution
The main business challenge was to streamline CLO
replenishment process and make the system a single source of
structured loan products for the Bank.
Main business challenges are:
uu To provide timely and accurate loan facility data for ongoing servicing,
monitoring and replenishment processes,
uu To improve coordination of hedging workflow between Portfolio
Management and Securitization teams,
uu To provide ability of CLO portfolio monitoring to identify asset utilization
excesses,
uu To detect and monitor Business and Credit Events related to secured
assets,
uu To provide ability to share assets across the Bank as well as avoidance of
over-hedging of already secured portions.
Starting from a small support team Luxoft was able to take over the
existing system and build up a comprehensive yet flexible solution to
address quickly changing business needs. Luxoft has established proper
communication and development processes required for the projects of this
magnitude.
System is designed using the“classical”J2EE enterprise three-tier
architecture with the thin HTML client. Presentation layer is implemented
using Struts 2 framework based on Servlet technology. JQuery Javascript
library is widely used for the creation of dynamic user interface with the
Ajax support. Business and Data layers are implemented with the Spring,
Hibernate and iBatis Java technology stack. Database procedures are
intensively used for the performance optimization. A self-written flexible
framework for Excel parsing and generation is created based on jXLS and
POI libraries. The system is deployed in Oracle Weblogic application server
and Oracle 10 database.
02Luxoft - Case Study

3. System provides several key features that cover the most critical business
needs:
uu Replenished Portfolio Servicing allows performing front-to-back
replenishment process including replenishment data preparation
and upload of new pool of assets to be securitized into the system.
Replenishment data preparation process is rule–based assets selection
which is specific for each CLO tranche aiming to CLO portfolio
optimization.
uu Daily Allocation process is core of the Securitization system to correct
and/or re-distribute CLO Reference amounts between CLO portfolios
on a daily basis to address assets amortization, FX-rate fluctuations and
asset reference amounts that exceed total limit amount of the asset.
Daily allocation algorithm was specifically proposed and implemented
for this purpose.
03Luxoft - Case Study
BROWSERS
PRESENTATION
TESTING
BUSINESS
HTML, CSS
STRUTS 2 SERVLETS
JSTL
DWR
COMMONS
GA
WATIR
/ WATIJ
TESTING
JUnit
UNITILS
EasyMock
JSP
JFreechart EXCEL VBA
SPRING POI
jXLS
JavaMail
VELOCITY
COMMONS
EHCACHE
DROOLS
JExelLOG4J
DATA ACCESS
TESTING
JUnit UNITILS dbUnit
JAVASCRIPT / AJAXJQuery PROTOTYPE
HUBERNATE iBaits
LOG4J
SPRING
JDBC
DATA ACCESS
WEBLOGIC MAVEN
(BULID)
ORACLE
TABLES VIEWS PARTIIONING
PL / SQL (PACKAGES, PROCEDURES, FUNCTIONS, TRIGGERS, DBMS JABS)

4. 04Luxoft - Case Study
uu SEC-specific Reportset Creation functionality allows the Securitization
business to use a reportset for replenishment that refers to one close-of-
business date for all relevant booking systems. The approach to define
reportsets for replenishment provides the Securitization business with
the opportunity to perform intramonth replenishment using datapool
data.
uu Asset Monitoring and Servicing system’s main purpose is to monitor
changes in the securitized portfolio between today and yesterday.
Data is fed into system from external source systems on a daily basis,
reflecting daily asset/counterparty information changes happen in the
real world. Changes in substantial data lead to business events, which
need to be considered by users since they might result into changes in
current securitized portfolio and further replenishment processes.
Asset Monitoring helps the Servicing team to identify potential Events,
i.e. potential problem cases.
uu CLO Axe List system for monitoring hedging plans against assets
via CLO recommended by Portfolio Managers; it is for planning and
disposition purpose.
Benefits
Customer Feedback
Luxoft has delivered fully functional and extensible System which
implemented all the client needs, in accordance with the schedule. The
System took all the burden of picking assets to be securitized and their
servicing. The features substantially reduce the operational costs and as a
result the business profitability is much increased.
The detailed feedback is provided upon the specific request.is provided
upon the specific request.

5. About luxoft
Luxoft, a principal subsidiary of IBS Group, is a provider of advanced
application and software engineering outsourcing services for global and
regional enterprises. Luxoft builds partnerships with its clients, such as
Boeing, IBM, Deutsche Bank, UBS, Harman, Avaya, Alstom, and Sabre, based
on the culture of engineering excellence, innovation, and deep domain
expertise. Luxoft offers international delivery capability through its network
of state-of-the-art delivery centers in North America, Eastern Europe, and
Asia. Luxoft`s customers benefit from the right mix of technology skills,
industry knowledge, proprietary processes and methodologies, and a
choice of engagement models.
For more information about Luxoft, visit
www.luxoft.com
www.luxoft.com/financial-services/
© 2012 Luxoft