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.