Credit Underwriting
Proprietary credit scoring and pricing, built for Australian structured credit
Every loan on the Gallantree platform is scored, priced, and monitored through a single quantitative framework. The result is consistent underwriting, transparent pricing, and portfolio level insight that stays current long after a facility funds.
The Engine
Proprietary credit scoring and pricing
Our engine combines bureau and primary source data, calibrated default and loss models, and risk based pricing into a single workflow. Every origination is translated into a consistent view of borrower, collateral, and structure risk, so investors see the same lens that drives our decisions.
Curated data inputs
Bureau files, ATO portal exports, bank statement analytics, valuations, rent rolls, and debt service records, mapped into a single borrower and collateral schema.
Probability of default models
Logistic and gradient boosted models calibrated on Australian loan performance data, scored against rating agency masterscales.
Loss given default and EAD
Collateral haircuts, recovery lag curves, and draw behaviour modelled at the facility level for senior, mezzanine, and revolving structures.
Risk based pricing
Target spreads derived from PD, LGD, tenor, correlation, and capital charge, reconciled against live market levels before any commitment.
Asset Class Calibration
Built for commercial real estate and corporate credit
The engine runs two specialised tracks, each calibrated to the risk drivers that matter most for the asset class.
Commercial Real Estate
Collateral led underwriting
LVR, debt yield, ICR and DSCR computed against stressed cap rates and vacancy
Asset class specific rent roll, WALE, and tenant covenant analysis
Sponsor equity, experience, and guarantee strength incorporated into the score
Independent valuation and QS cost plan ingestion with version control
Corporate Credit
Cash flow led underwriting
Three statement model ingestion with normalisations for one off items
Leverage, interest cover, fixed charge cover, and free cash flow conversion
Sector, cyclicality, and customer concentration overlays
Covenant package and documentation strength scored into the final rating
Credit Pricing
Every asset is graded, every grade is priced
Each loan receives a score out of 150 from the underwriting engine. The score maps to a grade band from A through E, and each grade carries a transparent margin range above the floating index rate. Pricing moves along a smooth polynomial curve, so a one point change in score translates into a consistent change in spread.
Risk adjusted margins tied to the probability of default curve
Grade bands anchor the range, scores set the exact pricing
Same framework applied in origination, pricing, and surveillance
Per-score margin ranges (Minimum, Default) + polynomial curve
Credit margin above Floating Index rate (BBSW 1M)
A
B
C
D
E
Quantitative Assessment
Continuous monitoring, not a point in time view
Underwriting does not stop at funding. The engine continues to score every facility against live data, so ratings, pricing, and risk flags reflect the portfolio as it is today, not as it was at origination.
Every loan re rated quarterly
Live portfolio surveillance
Borrower financials, rent rolls, valuations, and market indices feed back into the engine on a rolling basis so scores and ratings stay current.
Early warning signals
Covenant proximity, DSCR drift, receivables ageing, and sector factor moves trigger automated alerts ahead of a formal review.
Quarterly deep review
Every facility is re rated and re priced quarterly using the same framework applied at origination, producing a consistent trend view.
Stress and scenario testing
Macro scenarios, rate shocks, property value drawdowns, and corporate earnings declines are run across the portfolio to quantify tail risk.
See the engine in action
Book a walkthrough with our credit team. We will take you through a live sample portfolio, the underlying scoring methodology, and how the engine plugs into origination, warehousing, and investor reporting.