Credit Loss Accounting
Comprehensive, audit-ready, low-touch credit loss accounting for securities and loans

Rooted in decades of fixed-income analytics for investors at global institutions, Edge delivers audit-ready credit loss accounting for all debt securities, major loan types, and more. It covers:
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Loans, held-to-maturity (HTM) debt securities, receivables, and other financial instruments carried at cost under ASC 326-20 (“CECL”)
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Available-for-sale (AFS) debt securities under 326-30 and the 320-10 (OTTI) framework
Edge automates the process illustrated below to turn around granular credit loss estimates for large portfolios on tight deadlines, while preserving user discretion and explainability of results:
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Many asset classes
with our data and model partners:
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ASC 326-20 (“CECL”), 326-30, and 320-10 (“OTTI”)
- Accounting rules engine designed by CPAs and CFOs
- Report package with instrument-level granularity, methodology, and disclosures
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Fast turnaround
- On-demand processing in the cloud
- Scalable compute speed
- Easy interface and user support
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Audit support
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Fully documented, SOC 1 and SOC 2 Certified application
- Model support team to explain results and address validator, auditor, and examiner questions
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Run Settings

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Macro scenarios
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Credit and call/prepay model selections or overrides
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Loans only: Accounting elections
Data Intake

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Portfolio by feed or file
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Terms, conditions, asset descriptions
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Qualitative exclusions
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Securities only: AFS impairment screen
Default, Severity, Call/Prepay Rates

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Model results or user overrides
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Structured securities only: underlying collateral is modeled
Cash Flow Engine

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Integration of terms and conditions and default, severity, and call/prepay rates expected cashflows, losses
Accounting Rules Engine

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Translation of forecast to book entries per accounting rules
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Required disclosures
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Day 1 or Day 2 outputs
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Loans only: Mgmt. allowance adjustments
Reports

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Audit-ready package
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Export or feed
SOC 1 and 2 Certified
Resources
How reliable is your data?
Our team of quants and data scientists is available on demand to provide custom support.
