Cash Flow Evaluation, Liquidity Evaluation, and NPV Evaluation 

Use

Cash Flow Evaluation

In addition to analyzing positions and maturities, by looking at cash flows you can analyze interest rate risk. In the cash flow evaluation, the system shows incoming and outgoing payments, as well as payment gaps from cash flows. This provides you with an overview of the currency exposure for individual currencies or currency blocks. The evaluation covers both the perspective of interest rate risk control and currency risk control.

In reporting, the system displays the cash flows broken down into currencies or aggregated across several currencies. The system uses the volume outflows/inflows and the interest payments according to the interest commitment of the underlying items. Interest rates are not shown. In contrast to liquidity analysis, only interest-linked cash flows are shown.

Liquidity Evaluation

This evaluation includes the interest and capital payments of the corresponding capital commitment of each of the underlying transactions. This distinguishes the liquidity evaluation from the other gap analysis evaluations that display the interest rate risk and currency risk across the fixed-interest period.

Capital payments, which in reality do not flow, and which serve only as the basis for interest calculation for certain transactions, such as the nominal capital with FRAs or in the case of swaps without a principal swap, are never included in liquidity analysis. They are, however, displayed in other gap analysis evaluations.

In liquidity evaluation, the system displays incoming and outgoing payments, payment gaps, and cumulated payment gaps from liquidity flows. Interest rates are not shown.

NPV Evaluation

In the net present value evaluation, the system determines the cash flows of the transactions selected for each date in the defined maturity band and displays them as discounted on the evaluation date.