7.1.7.1 Contractual Profile
The steps involved in calculating cash flows at a forward date under contractual terms when the method is selected as “Contractual Profile” are as follows:
- The un-bucketed contractual cash flows as of the current date are obtained as a download. The current date is equal to the As of Date selected during Run execution.
- The contractual cash flows prior to or on the forward date are excluded and the contractual cash flows occurring after the forward date are considered the forward cash flows. For example, the current date is taken as 28th February 2016 and the contractual cash flows for an account as of the current date are as follows:
Table 6-30 Cash flow details
| Cash Flow Date | 28-Mar-16 | 28-Apr-16 | 28-May-16 | 28-Jun-16 | 28-Jul-16 |
|---|---|---|---|---|---|
| Cash Flow | 80 | 70 | 60 | 50 | 40 |
Cash Flow Date 28-Mar-16 28-Apr-16 28-May-16 28-Jun-16 28-Jul-16 Cash Flow 80 70 60 50 40.
Table 6-31 Cash flow details
| Cash Flow Date | 28-May-16 | 28-Jun-16 | 28-Jul-16 |
|---|---|---|---|
| Cash Flow | 60 | 50 | 40 |
Note:
The cash flow calculation method ‘Contractual Profile’ is applicable only when the forward balance calculation method is selected as ‘Contractual Run-off’.Only the principal cash flows are taken into account for forward liquidity calculations. Interest cash flows as of the current date are ignored.