Analyzing Data Constellation for Calculations  

Purpose

This process determines how the system interprets relationships between collateral entities for performing collateral calculations. The system analyzes the data constellation from the current collateral entity where it is presented. It then performs the collateral calculations at run time.

 

 Graphical Representation of a Collateral Data Constellation

 

The graphic presents assignments between collateral entities. As shown in the graphic, you can define any number of relationships between collateral entities. It is however mandatory to specify the order of a relationship with respect to other relationships. You can specify the order of relationships using hierarchical values such as ranking order, priority and ranking class. The system uses these hierarchical values for performing calculations.

 

Process Flow

The analysis of a data constellation involves consolidation of calculation-relevant parameters specified for collateral entities and their relationships. The system subsequently interprets this analysis using the calculation logic specified internally for collateral calculations.

 

The calculation-relevant parameters include the following:

 

·        Collateral object

¡        Collateral object type, value and currency

¡        Lending rates for each collateral object and the safety discounts, if any

¡        Asset part amount or part percentage as specified in the charges.

¡        Ranking orders for collateral agreements as specified in the charges

●     Collateral agreement

¡        Collateral agreement type and the corresponding value type

¡        Assessment amount and currency of collateral agreement and special markdown, if any

¡        Collateral agreement portion amount or percentage

¡        Ranking ratio of collateral agreement portions

¡        Portion restriction, if any

¡        Asset value percentage (for pledges and assignments)

¡        Guarantee rate, fixed liability, default liability and lending rate

●     Receivable

¡        Contract amount and currency

¡        Maximum and current risk amounts

¡        Interest and fees amounts

●     Collateral Terms

¡        Assigned collateral agreement portion identification and validity

¡        Priority of receivables

¡        Secured receivable amount for receivable

¡        Receivable amount or percentage

¡        Receivable portion identification

¡        Reference receivable amount or percentage