10.1.3.5 New Funding

This counterbalancing position type allows you to raise new funding either as a deposit or borrowing. A new funding creates a cash inflow in the specified time bucket and a corresponding outflow in a later time bucket. The LRMM application allows you to specify the product, borrowing date (inflow date), borrowed amount, maturity date and amount.

As part of this counterbalancing position, you are required to select a funding product and provide the following parameters:

• Legal Entity: This is the legal entity which is raising the new funding in context of the counterbalancing position.
• Line of Business: This is the line of business of the legal entity which is raising the new funding.
• Natural Currency: This is the natural currency of the new deposit or borrowing account.
• Counterparty: This is the counterparty who is deemed to have provided the new funding.
• Inflow Bucket: This is the transaction start bucket that is, the bucket in which the inflows from the new deposit or borrowing is recorded.
• Inflow Amount: This is the cash received from the new funding.
• Maturity Bucket: This is the maturity bucket of the transaction that is, the bucket in which cash outflows is recorded.
• Maturity Amount: This is the outflow amount at the maturity of the new funding.

The cash flows do not have any calculations. It posts the inflows and outflows amount as provided by you.