5.19 Netting Cash Flows for a Tranche
You can maintain netting preferences for borrowers and participants of a tranche in the Borrower Details sub-screen and the Participant Ratio Details sub-screen of the LB Tranche Contract Online screen.
For a borrower, you can choose one of the following as the netting preference (in the
Borrower Details sub-screen of the LB Tranche
Contract Online screen):
- All Components
- None
- Principal Only
Similarly, for a participant, the following options are available for netting (in the
Participant Ratio Details sub-screen of the LB
Tranche Contract Online screen):
- All Components
- None
You can view the borrower and participant side contracts for a tranche, for which netting is applicable, in the Loans Syndication Netting Cash Flow Summary screen.
Netting takes place only if the following parameters for a cash flow are same:
- Tranche contract
- Customer (Borrower/Participant)
- Value Date
- Currency
This topic contains the following sub-topics: