SOFI Specialized Valuation Metric 96

SOFI Specialized Valuation Metric 96 (SVM96) is a proprietary, risk-adjusted valuation model developed by SOFI for assessing the intrinsic value of complex financial instruments, particularly structured credit products and securitized assets, within illiquid markets. It integrates stochastic modeling of underlying asset performance with Monte Carlo simulations to project cash flows under various economic scenarios. SVM96 employs a 96-factor sensitivity analysis, quantifying the impact of key macroeconomic and asset-specific variables (e.g., prepayment rates, default probabilities, recovery rates) on valuation. This allows for more precise risk management and pricing compared to traditional valuation methods, informing investment decisions and regulatory capital calculations.