Understanding the Cash Flow Modeler

The Cash Flow Modeler enables you to interactively model cash flows for an instrument or product, graph and view the results online, and write the results to the database. You can explore assumptions affecting cash flows such as the interest rate environment, terms, and payment characteristics of the instrument and the effects of the Behavioral Model.

You can use the Cash Flow Modeler in one of three ways:

• To retrieve one of the delivered instrument cash flows, temporarily change selected parameters (for example, start date, initial balance, and interest rate), run the cash flow, and view the statistical and graphical results online.

• To modify a previously created user-defined instrument, override some of the parameters, model the cash flows, and view the results.

• To create a new instrument or pool from scratch based on your own implementation environment, model the cash flows, and view results online.

You can save the results of the Cash Flow Modeler (for both user-defined and new instruments) to the Cash Flow Modeler table. For delivered cash flows, you can view the results from changes that you make to the parameters online, but you cannot save those results and override the delivered cash flows.