3.1 New Features in this Release

• Interest Only instruments: These are instruments where only the interest of a bond (or other commitment) is paid to the investor. The underlying principal is a notional amount that the coupon is based on, it is never paid nor received by the participants
• Loan syndication (Percent Sold): Loan syndication is the process of involving a group of lenders in funding various portions of a loan for a single borrower. Sometimes a bank can also sell part of a loan to another financial institution. Such scenario is considered at the time of calculating cash flows
• Pay Equivalent compounding convention: In most cases, interest rates are not adjusted for the differences in pay-basis between the quote basis of the pricing index and the payment frequency of the account to which the index is assigned. Some instruments, notably Canadian Mortgages, follow a convention that the interest rates are adjusted. In this case, the Pay-Equivalent Compounding Convention is set to Semi-Annual Quoting Convention. Interest rate is transformed from annual to semi-annual quoting convention before applying accrual factor and compounding basis
• Write-off amount for behavior pattern: When behavior type is Devolvement & Recovery or Non-Performing recovery rate may be less than 100%. Amount that institution is unable to recover from customers are written-off from the books. This amount is shown as a new output of CFE called Write-Off
• Process for parent legal entity: In run parameter of Cash Flow Process, parent/node can be selected from hierarchy. Data of all child and descendants will get processed
• Calculation date range As-of-date to specified future date: Cash flows can be calculated only up to a selected time, say 1 or 2 years, instead of till maturity
• Prepayment on user-defined tenor using Custom Model method: Prepayment Model can be used to calculated prepayment/early redemption amounts on user-defined tenor. Earlier models could be used only when prepayment was on a payment date
• User Interface
  • Payment Pattern: Enabled Principal Only option for Level Principal payment type
  • Rate Management: Economic Indicator UI to define and store historical rates has been added
  • Cash Flow Report: Input and Output of cash flow process can be viewed for an instrument
  • Configuration UI: Allows you to define parameters that control the working of Cash Flow Engine