4.23 Maintaining Floor and Ceiling Details

You can capture floor and ceiling details for base rate, margin and all-in rate. The floor and ceiling values can be maintained separately for each interest components associated with various Drawdown products mapped to the tranche for each drawdown currency. For Floor, the base rate should be more than the specified rate, and for Ceiling, the base rate should be less than the specified rate.

Specify the User ID and Password, and login to Homepage.

1. On the Homepage, type LBDFLRCL and click next arrow.
   The Floor and Ceiling Maintenance screen is displayed.

   Note:

   The fields which are marked in asterisk red are mandatory fields.

   Figure 4-95 Floor and Ceiling Maintenance

   
   

   
   Description of "Figure 4-95 Floor and Ceiling Maintenance"

   
   
2. You can specify below details in this screen. For information on fields, refer to the field description table.

   Table 4-31 Floor and Ceiling Maintenance

   Fields	Description
   Contract Ref No	The system displays contract reference number.
   Product Code	The system displays the product code.
   Customer	The system displays the customer name.
   Facility Name	The system displays the facility name.
   CCY	Specify the currency details.
   Currency Name	The system displays the name of the currency selected.
   Effective Date	Specify the effective date for each currency you select.
   DD Product	The system displays the DD product details.
   Interest Component	Specify the interest component details.
   Floor	Specify the floor base rate.
   Ceiling	Specify the ceiling base rate.
   Margin Adj Comp	Select the margin adjustment component from the adjoining option list. You can select any drawdown basis margin component associated with the drawdown interest component. You can maintain only one adjustment margin component for each tranche floor and ceiling maintenance for a combination of Tranche ref no, currency, effective date, drawdown product and Interest component. System validates whether the base rate of the associated drawdown is within the limit of floor and ceiling maintained for the base rate, otherwise the system adjusts the rate to the margin adjustment component accordingly. Note: Floor and Ceiling maintenance is not allowed if Drawdown basis margin component not attached to the interest component. Adjustment Margin component can be maintained / updated for current system date only. If the Adjustment Margin component is changed, then the new margin adjustment component is used only for subsequent propagations
   All-In Rate Floor	Specify the floor all-in rate
   All-In Rate Ceiling	Specify the ceiling all-in rate.
   Margin Component	Specify the margin component.
   Basis Amount Tag	The system displays the basis amount tag.
   Margin Floor	Specify the floor margin.
   Margin Ceiling	Specify the ceiling margin.

   This topic contains following sub-topics:

• Validating Base Rate Floor and Ceiling at Drawdown Level
  
• Propagating Base Rate Floor and Ceiling for an Effective Date
  
• Validating Margin Rate Floor and Ceiling at Drawdown Level
  
• Propagating Margin Rate Floor and Ceiling for an Effective Date
  
• Propagating All-In Rate Floor/Ceiling for an Effective Date