Covenants in Fairways Debt are agreements specifying actions and thresholds that the borrower must perform and respect. Covenants protect lenders when borrowers do not meet their requirements.
Metrics define the measurements to meet in a covenant. Perimeters define what borrower(s) are associated with what metrics.
If you have manual metrics, enter this manual data in the relevant scenario.
Navigate to the Debt & Derivatives Application
- Log in to your Fairways Debt account and select a customer account, if relevant.
- Navigate to Applications > Debt & Derivatives > Entities.
Apply a Metric Frequency and a Currency Type to an Entity
The metric frequency defines the scenario frequency. The currency type defines the currency used for the values of the indicators (calculated by the platform), metrics (entered manually) and covenants (calculated by the platform).
- Click Edit beside the relevant entity.
- Select a metric frequency:
Warning: Updating an existing metric frequency resets the scenario data.
- Select a currency type:
- Account Currency (default value)
- Transaction Currency
Warning: When "Transaction Currency" is selected, the values of the indicators and the covenants are calculated in the transaction currency, and any manual metrics must be added directly in this currency. If there are 2 or more transactions in different currencies on the same entity, the indicators (and their related covenants) cannot be calculated.
- Click Apply.
- Click Yes, edit.
The selected frequency and currency type are configured for the relevant entity.
Configure an Entity Scenario
- Click the entity to verify the scenario frequency.
- Select the relevant scenario.
- Click Edit Data.
- Complete the scenario with all relevant details.
- Click Apply.
The scenario is configured.
Tip: Click the clock icon on the top-right corner to view the change history on a dedicated panel.