Financial Risks: Capital, Rate and Margin Commitments

The Financial Risks analysis shows the breakdown of capital commitment, rate commitment, and margin commitment values for each transaction, at the selected analysis date. This view enables you to know when to renegociate with your bank before it changes the margin after some time (depending on the contract).

Note: The Financial Risks: Capital, Rate & Margin Commitments analysis is currently only available for Finnish and Norwegian customers. If interested, please contact your consultant for more details.

 

Prerequisite

 

Navigate to the Analysis & Reporting Application
  1. Log in to your Fairways Debt account, e.g. https://login.financeactive.eu.
  2. Select a customer account.
  3. Navigate to Applications > Analysis & Reporting.

 

Generate a Financial Risks Analysis
  1. Navigate to Analyses.
  2. Click Financial Risks: Capital, Rate & Margin Commitments.

Analyses_EN.png

  1. Configure the analysis settings.

Field

Description

Market Date

Analysis date.

Currency

Currency in which the analysis data displays.

Filter

Refine to include relevant data in the analysis.

Derivatives

Include/Exclude derivative transactions.

Renewal Policies

Include/Exclude renewal policies.

Tags for Simulated Portfolio

Filter by tag(s) applied to the simulated portfolio.

Market Scenario

Simulate how data would look based on different values.

FX Rate Scenario

Apply a simulation using custom Forex rates.

Analysis Frequency

Frequency of the time ranges.

Note: This frequency only applies to the first year. The annual frequency applies from the second year.

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The Financial Risks: Capital, Rate and Margin Commitments analysis updates following the selected settings.

Note:

  • If the loan is:
    • Multi-phase and if the next phase is unknown, the end date of the margin commitment will be the end of the current phase.
    • Not multi-phase or if the next phase is known, the margin commitment is similar to the capital commitment.
  • Modifications on the margin performed in the transaction life cycle are not taken into account.

FinancialRisks_CapitalRateMarginCommitments_Graph_EN.png

FinancialRisks_CapitalRateMarginCommitments_Table_EN.png

 

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