1. Cash Flow Engine Reference Guide
  2. Cash Flow Calculations
  3. Cash Flow Calculation Process
  4. Additionally Derived Data
  5. Process Modeling Events

7.8.8.4 Process Modeling Events

There are four events modeled in the Cash Flow Engine:

  • Payment
  • Payment Change
  • Reprice
  • Prepayment

When multiple events occur on the same day the order of processing is as follows:

Interest in Arrears

  • Payment Calculation
  • Payment
  • Prepayment
  • Reprice

Interest in Advance

  • Reprice
  • Principal Payment
  • Prepayment
  • Interest Payment

For interest in Advance Instruments, Payment Calculation is not applicable. Payment Calculation occurs only on conventionally Amortizing Instruments. Processing of an event includes these steps:

  • Dynamic Information is updated
  • Financial Elements summarizing the event is generated
  • Event Dates are incremented to the Next Event Date