CABS Test Harness (CABS TH) is part of the CAARS suite of software products providing independent verification for the data and calculations used within an ABS solution. We have already successfully delivered CABS TH to several clients for multi-billion £ retail and SME securitisation transactions. CABS TH has been used to support implementation testing, regression testing and live ‘business as usual’ material accuracy representations and warranties normally required as part of the role of the servicer.
- Independent to your production securitisation system (in-house or third party) we analyse the data from your (potentially multiple) host systems needed to support the securitisation requirements with focus on the relevant asset classes and business events that impact securitisation transactions and how these evolve over the full contract life-cycle, from potential inclusion in the securitisation pool until the end of the contract life.
- Once your data is available to our CABS TH (and after rigorous QA) we run the CABS TH processes and compare your securitisation systems results (this output may be the data that is sent to a third-party product such as Deloitte’s ABS Suite) to the data we have transformed (for example if DCF calculations are required) and aggregated within CABS TH.
- The CABS TH data comparison enables a full volume test per attribute per lending contract to be presented to the user via a dashboard, enabling the attribute with the highest priority data attributes and/or number of mismatches to be easily targeted, also displaying the number of matches and the number within a pre-set tolerance level for numerical data. The dashboard enables drill down from the summary display to individual contracts with differences (and those without differences to assist in the analysis process) enabling further investigation in the respective results. This facilitates an iterative review and correction process, optimising the analysis and fix times.
- CABS TH will maintain and compare multiple different data sets so supporting testing at varying data volumes (starting low and steadily progressing to full volume as it is not usually possible to guarantee the complete coverage of test cases in term of overall events and combinations of these without full volume) and at differing time points (so movements over sequential months can be replicated).
- CABS TH enables focus on both the inputs and outputs from your production securitisation system, covering all aspects of the securitisation life-cycle from pool selection to investor reporting. Outputs are available throughout the CABS TH process to support and record the progress and results of the compares, including summarised results for monitoring resolution progress and communication purposes.
- For randomised asset pool selections CABS TH first validates the production system selected contracts are in the eligible pool and then mirrors the investor reports and all key down-stream securitisation outputs based on the pool selections so all outputs can be cross verified. CABSS TH can also validate the data that your securitisation systems generate to provide the required Loan Level Data exports in compliance with the regulatory requirement.
The key aim of CABSS TH is to generate confidence within your organisation of the level of accuracy of the production ABS process by parallel independent data aggregation, transformation, automated data results comparison and variance reporting. CABS TH has many uses, including as an audit tool for existing ABS transactions.