BACK
INDENTURE WATERFALL AUTOMATION
100% On-Time Distributions
100% On-Time Distributions
How Elimentary delivers 100% on-time monthly waterfall distributions for a leading ABS servicer
How Elimentary delivers 100% on-time monthly waterfall distributions for a leading ABS servicer
How Elimentary delivers 100% on-time monthly waterfall distributions for a leading ABS servicer
How a leading ABS servicer automated indenture-driven waterfall calculations using Elimentary
How a leading ABS servicer automated indenture-driven waterfall calculations using Elimentary
OVERVIEW
A leading ABS servicer administering 50+ deals across consumer and commercial asset classes ran monthly distribution cycles for each deal. Every distribution date required analysts to re-read the relevant indenture sections, confirm payment priorities, map current-period figures from trustee reports and cash management statements, build or update the waterfall model, and generate the investor distribution report. This took 6 hours per deal, every month. Elimentary read each indenture once, structured the waterfall logic into a reusable agent-driven model, and reduced the monthly run to 30 minutes per deal.
A leading ABS servicer administering 50+ deals across consumer and commercial asset classes ran monthly distribution cycles for each deal. Every distribution date required analysts to re-read the relevant indenture sections, confirm payment priorities, map current-period figures from trustee reports and cash management statements, build or update the waterfall model, and generate the investor distribution report. This took 6 hours per deal, every month. Elimentary read each indenture once, structured the waterfall logic into a reusable agent-driven model, and reduced the monthly run to 30 minutes per deal.
CHALLENGE
With 50+ deals and a 6-hour monthly cycle per deal, the servicing team spent the majority of every distribution period on manual waterfall work rather than exception review and investor communication.
With 50+ deals and a 6-hour monthly cycle per deal, the servicing team spent the majority of every distribution period on manual waterfall work rather than exception review and investor communication.
01. MANUAL WATERFALL RECONSTRUCTION
01. MANUAL WATERFALL RECONSTRUCTION
Every distribution date, analysts re-read the relevant indenture sections to confirm payment priorities and haircut definitions before rebuilding the waterfall model with current-period figures, repeating the same extraction work month after month across every active deal.
Every distribution date, analysts re-read the relevant indenture sections to confirm payment priorities and haircut definitions before rebuilding the waterfall model with current-period figures, repeating the same extraction work month after month across every active deal.
02. DATA ASSEMBLY BURDEN
02. DATA ASSEMBLY BURDEN
Pulling the correct figures from trustee reports, servicer reports, and cash management statements and mapping each figure to the right waterfall step consumed 3-4 hours before any calculation could begin. Mismatches required manual reconciliation across multiple source documents.
Pulling the correct figures from trustee reports, servicer reports, and cash management statements and mapping each figure to the right waterfall step consumed 3-4 hours before any calculation could begin. Mismatches required manual reconciliation across multiple source documents.
03. DISTRIBUTION TIMING RISK
03. DISTRIBUTION TIMING RISK
Errors in the waterfall calculation were caught only after the distribution report was circulated, requiring urgent corrections that compressed the settlement window and created investor relations pressure before every distribution date.
Errors in the waterfall calculation were caught only after the distribution report was circulated, requiring urgent corrections that compressed the settlement window and created investor relations pressure before every distribution date.
SOLUTION
Elimentary deployed a three-agent waterfall automation platform. Each deal's indenture is read and structured once on onboarding, then the monthly cycle runs automatically with new data and agent-verified calculations.
Elimentary deployed a three-agent waterfall automation platform. Each deal's indenture is read and structured once on onboarding, then the monthly cycle runs automatically with new data and agent-verified calculations.
01. INDENTURE STRUCTURING AGENT
01. INDENTURE STRUCTURING AGENT
Reads each deal's indenture on onboarding, extracts the full priority-of-payments structure, coverage test definitions, and haircut tables, and builds a reusable, clause-linked waterfall schema that governs every subsequent monthly distribution run.
Reads each deal's indenture on onboarding, extracts the full priority-of-payments structure, coverage test definitions, and haircut tables, and builds a reusable, clause-linked waterfall schema that governs every subsequent monthly distribution run.
02. MONTHLY DATA INGESTION AGENT
02. MONTHLY DATA INGESTION AGENT
Pulls the current-period trustee report, servicer report, and cash management data at each distribution date, maps every figure to its waterfall step, and flags data gaps or source mismatches before any calculation begins.
Pulls the current-period trustee report, servicer report, and cash management data at each distribution date, maps every figure to its waterfall step, and flags data gaps or source mismatches before any calculation begins.
03. WATERFALL CALCULATION AND REPORTING AGENT
03. WATERFALL CALCULATION AND REPORTING AGENT
Runs the full distribution calculation against the structured waterfall schema, applies OC and IC tests, and generates the investor distribution report, with every figure traced back to its source document and governing indenture clause for audit.
Runs the full distribution calculation against the structured waterfall schema, applies OC and IC tests, and generates the investor distribution report, with every figure traced back to its source document and governing indenture clause for audit.
RESULT
100% On-Time Distributions
100% On-Time Distributions
Every distribution report was delivered on or before the settlement date across all 50+ deals and 12+ distribution cycles post go-live, with no emergency corrections after circulation.
Every distribution report was delivered on or before the settlement date across all 50+ deals and 12+ distribution cycles post go-live, with no emergency corrections after circulation.
12X Faster Monthly Waterfall
12X Faster Monthly Waterfall
Monthly waterfall run time dropped from 6 hours to 30 minutes per deal, freeing the servicing team from reconstruction work and shifting their focus to exception review and investor communication.
Monthly waterfall run time dropped from 6 hours to 30 minutes per deal, freeing the servicing team from reconstruction work and shifting their focus to exception review and investor communication.
50+ Deals Automated
50+ Deals Automated
The servicer's full active deal portfolio was onboarded in a single deployment. Each deal's indenture was extracted, structured, and validated before the first automated distribution run.
The servicer's full active deal portfolio was onboarded in a single deployment. Each deal's indenture was extracted, structured, and validated before the first automated distribution run.
TESTIMONIAL
"Running monthly waterfalls used to mean a week of analyst time across the portfolio. Elimentary reads the indenture once and every month the team just reviews the flagged exceptions. Distribution reports that took days now ship in under an hour."
"Running monthly waterfalls used to mean a week of analyst time across the portfolio. Elimentary reads the indenture once and every month the team just reviews the flagged exceptions. Distribution reports that took days now ship in under an hour."
Head of Loan Servicing Operations
Head of Loan Servicing Operations
LEADING ABS SERVICER
LEADING ABS SERVICER
© 2026 Elimentary. All rights reserved.
© 2026 Elimentary. All rights reserved.
© 2026 Elimentary. All rights reserved.