4.9.18.3 Specifying Participant Margin Rates

You can capture margin rates for each participant of the tranche by clicking the Part populate button on the Margin Maintenance screen. The system displays the Participant Margin Maintenance screen. Note that you will be able to capture participant margin only if the box Margin for Lender is selected in the Loan Parameters screen.

All details captured in the Margin Maintenance screen are defaulted here.

For a given effective date and currency, you can view the margin maintained for the borrowers and participants.

To add a new participant, click the List of Values button. The system displays all participants linked to the tranche. You can specify the margin rate applicable for the required participants from the required effective date.

Note that you can maintain margin rates for participants only for margin components of the main interest components of the Tranche’s Drawdown products.

Place your cursor on a participant and click the Delete Row button to delete that participant.

Click Ok button to save the details and exit the screen.

The system ensures that the total margin rate of all the participants is the same as the borrower margin rate for the effective date for which margin rate is captured/ amended. It l also check the rates for each participant, margin component, currency, effective date and amount slab combination. You should have computed the required margin rates prior to capturing or amending the margin rate using this screen. If the validation for margin rates fails, the system displays an error message and will abort the transaction. You have to correct the margin rates and then proceed.