CIS HOLDING

CIS Holding AG specializes in the analysis and research of complex financial products, in particular Collateralized Loan Obligations (CLOs). In this context, CIS Holding counts the analysis and determination of the Alpha-generating components, the peer group analysis based on this, various evaluation models and reporting to its areas of responsibility.

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ADVANCE THROUGH KNOWLEDGE

“We only invest in what we understand.”

CIS Holding AG is a financial services boutique in the area of research and analysis of structured credit products, in particular collateralized loan obligations (CLOs).

ORGANIZATION

CIS Holding AG (CHE - 269.509.579), based in CH - 8808 Pfäffikon, Switzerland, was founded in November 2012 and has been active since February 2014.

Among other things, CIS Holding AG acts as the parent (company) of CIS Asset Management (Deutschland) GmbH (https://cisasset.com), a financial services provider regulated by the German Federal Financial Supervisory Authority (BaFin).
CIS Holding AG specializes in the analysis and research of complex financial products, in particular Collateralized Loan Obligations (CLOs). In this context, CIS Holding counts the analysis and determination of the Alpha-generating components, the peer group analysis based on this, various evaluation models and reporting to its areas of responsibility.

Team

Paavo Bartsch

Paavo joined CIS Holding AG in 2018 and is head of sales of the CIS - Group. Paavo also serves as a member of the Board of Directors of CIS Holding AG. He specialises on institutional and professional clients as well as the related client support.

Inès Bartsch

Inès joined CIS Holding AG in 2014 and serves as Chief Executive Officer of the CIS - Group. She is focusing on the analysis/performance evaluation of CLOs as well as the CLO manager due diligence. Inès holds a B.A. in Economics from the University of Buckingham.

RESEARCH AND ANALYSES

PORTFOLIO MANAGEMENT MODEL

The Portfolio Management Model is the internal master tool for CIS, as it combines the features of all other below described analysis models. Its purpose is to control and monitor special key indicators of a portfolio as well as to enable us structuring and ramping-up new portfolios.
With the Portfolio Management Model, one can validate for instance the effect of a new investment on the overall portfolio level.
It also serves as a risk management tool on a portfolio basis in order to be able to model various scenarios. Further, this tool is used to prepare different investor-specific reports.

EVALUATION MODEL

With the help of the Evaluation Model one can model a CLO with all its subtleties, such as the cost and fee structure as well as the various concentration limits under ceteris paribus assumptions. The model is used to forecast future cash flows and to determine their sustainability. Both market data and various manager-specific Alpha indicators serve as input indicators.

PEER GROUP ANALYSIS

The Peer Group Analysis makes it possible to compare the various Manager Signatures or their Alpha components (risk and performance indicators) both against market data and against each other, manager against manager and with other internally defined universes.
It is possible to set a weighting for individual indicators, depending on individual preferences, and to derive an internal ranking accordingly.

MANAGER SIGNATURE

One proprietary analysis tool is called Manager Signature, in which different Alpha indicators (both risk and performance indicators) are analysed on a monthly basis.
The cleaned data from the monthly trustee reports serve as input data (please see Proprietary Data Base).
CIS maintains of each evaluated manager on average 4 to 6 of those Manager Signatures with a minimum history of 60 months. The manager-specific indicators can often be traced back to the period prior the Great Financial Crisis.
The purpose of the Manager Signatures is to quantitatively process and understand the behaviour of a CLO manager or his team over the maximum period of time.

PROPRIETARY DATA BASE

The CIS Proprietary Data Base forms the core of each of our analyses. On the one hand, it includes the raw data from monthly trustee reports, the usually quarterly available payment reports (Note Valuation Reports) and, on the other hand, indenture and offering memorandum of each CLO.
For the later analysis, raw data is elaborately cleaned up in various steps and brought into a uniform format. As raw data are often error-prone, they are always checked for plausibility, mathematical logic and completeness, partly automatically but also manually.

Our mission

At CIS, we are very research-focused and attach great importance to our own analysis and data base. Our approach dates back to 1999. We learned that only conscious dealing with risks of any kind - especially in the credit sector - requires a high degree of monitoring, reassessment as well as a clearly defined risk management process.

Hence, we have developed a highly sophisticated approach based on proprietary analysis tools and established it within the framework of CIS CARE (CIS CLO Analytical and Research Engine). We are continuously revising our proprietary tools in order to adjust to the current market conditions as well tracing new Alpha indices.

SERVICES

Monitoring / Reporting

Given that we have a sufficient data base or being supplied with a complete data set, we are able to monitor various risk and performance indices, report cash flows, identify and correct wrong payments as well as project cash flows.
The reporting is available in frequencies chosen by the client (for instance monthly, quarterly or semi-annually). This service is offered at a fixed fee per position.

Valuation

We generate mark-to-model CLO valuations based on individual assumptions. We offer this service for a fixed fee per position.

Securitization

We have established a securitization company in Luxembourg which can issue securities on an underlying portfolio or build a portfolio with multiple issuances. The securities may be designed individually as long as they satisfy current law. Each issue out of this securitization vehicle is "ring fenced" i.e. independent and not liable for other issuances of the company. Auditors are Ernst & Young Luxembourg.