7.1 Business Assumptions Supported

The application supports the following types of business assumptions:

Table 7-1 Supported Business Assumptions

Sl. No. Assumption Category Assumption Sub-category
1 Cash Flow Movement

Cash Flow Movement Asset Sale

Cash Flow Delay Delinquency Prepayment Recovery Rollover

Run-off

2 Encumbrance

Encumbrance

Ratings Downgrade Valuation Changes

3 Incremental Cash Flow

Incremental Cash Flow Drawdown

New Business Ratings Downgrade Run-off

Secured Funding/Financing Valuation Changes

4 Value Change Available Stable Funding Factor Haircut Required Stable Funding Factor

The computations related to each assumption category and sub-category are explained in detail in the following sections.