6.1.7.3 Current and Default Profile

The current and default profile method is a combination of the current profile method and the incremental run-off method of generating cash flows. In this method, the cash flows are generated for some forward dates based on the current profile method and for others based on the default cash flow profile specified by the user as part of the incremental cash flow business assumption. Both these methods are used for generating cash flows for the same dimensional combination. However, only one method is applicable for a given forward date within a single Run execution.

For example, the current profile method can be used to generate cash flows for all forward dates occurring within the next 30 calendar days and default profile method for all forward dates later than 30 days. This is specified as part of the rule named “LRM - Cash Flow Method Reclassification - Forecast”. Considering the As of Date to be 28th February 2016 and the forward liquidity calculations are being executed for 6 forward dates which are at weekly intervals starting 1st March 2016, the cash flow methodology applicable for each forward date is determined as follows:

Table 5-34 Cash flow methodology

Forward Date	Days from As of Date	Cash Flow Calculation Method Applied
1-Mar-16	2	Current Profile
8-Mar-16	9	Current Profile
15-Mar-16	16	Current Profile
22-Mar-16	23	Current Profile
29-Mar-16	30	Current Profile
5-Apr-16	37	Default Profile

The process of generating forward cash flows based on the current profile method is documented as part of the Current Profile section above. The process of generating forward cash flows based on the default profile method is available as part of the Incremental Run-off Assumption section below.