Reference Cashflow Database (RCD)
Markit’s Reference Cashflow Database (RCD) service acts as the central monitoring and settlement platform for the ABCDS market.
Product summary:

The rapid growth of asset-backed credit default swaps (ABCDS) has brought numerous challenges to the market. Unlike CDS on unsecured debt, ABCDS have a “pay as you go” structure where payment shortfalls are calculated monthly. Because data availability to conduct these calculations is suboptimal and complex, the interpretation of contract documents often varies. These variances create mismatches, operational burdens, tight windows for payment notices and delivery, and complicate ISDA settlement calculations. Markit’s Reference Cashflow Database (RCD) service acts as the central monitoring and settlement platform for the ABCDS market. Our RCD calculation engine greatly simplifies complex settlement calculations and reduces failure rates with payment matching and clearing. With Markit RCD, clients can resolve cashflow payment discrepancies with a single enquiry, replacing numerous counterparty conversations.
Key benefits:
Timeliness of data - All trade settlements are complete in T+2
Markit RCD analysts provide counterparty dispute resolution
Allows for reduction in operational burden and expenses
All reference data is extensively cleansed and validated prior to publishing
Alerting allows for daily notification of credit events (implied or hard writedowns, distressed downgrades, bond step-ups) and trustee corrections
RCD publishes principal and interest payment data on over 56,000 bonds monthly
Key functions:
Calculate all monthly settlements within two business days of bond payment date, including Interest Shortfalls, Principal Shortfalls, Writedowns and all Reimbursements
Automate the settlement and delivery amounts via XML file and the generation of payment and termination notices
Evaluate trade performance and the impact of different cap options, current or theoretical trades
Resolve cashflow payment discrepancies with one call to Markit
Fact Sheets
Reference Cashflow DatabaseReference Cashflow Database
Related Products
CMO/ABS Cashflow
European ABS Pricing
Indices
RCD
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