Every method note and write-up on this site is built to be defensible. This page documents where the data comes from, how the synthetic worked examples are constructed, the math behind each metric, and the clear line between what is illustrative and what is sourced from published industry data.
The 2,000-loan example book, the direct-lender segment book, and the dealer scorecard portfolio are all synthetic. No real borrower, dealer, or lender data appears anywhere on this public site. The example loans are generated to mirror the structure of a real mid-market subprime book: realistic distributions of FICO, term, advance rate, vehicle age, mileage, affordability, and geography, with default and recovery behavior calibrated to the level and shape of the published Fitch subprime auto ABS index and ABS-EE-style loan-level distributions.
Synthetic is the right choice here, not a limitation. It lets the write-ups demonstrate exactly how attribution and covenant math behave, without exposing anyone's portfolio. It also means the worked-example numbers are illustrative of method, never a claim about any specific lender's results.
The two sample data reports walk one synthetic composite book through the full analysis. They are illustrative, built to show the format and the reasoning on made-up data, not drawn from any real portfolio. Every number in them is synthetic. The published articles and method notes apply the same reasoning to industry data and synthetic worked examples.
When a number is described as market data, it is cited to a named, public source. The write-ups carry their citations inline. The recurring benchmarks are:
The write-ups are independent market research: analysis built from public, named sources, walked through on synthetic worked examples. A worked underwriting example returns an indicative probability of default and expected loss to show how the framing works; it is not a credit approval, a score, or a guarantee. The state recovery-law breakdown is a general reference for understanding exposure, not legal advice; statutes change and edge cases exist, so verify with counsel before acting. Nothing here is an audit of any portfolio, an offer of credit, investment or legal advice, or a regulatory determination. It is research, published to be read and checked.
LendRisk Analytics is an independent research publication with no position in, and no affiliation with, any company mentioned. Nothing here uses any proprietary data or systems. The work stands on the method and the sources, which are documented here so they can be checked. Have a question about the market, or a different view? Send it through →.