16.1.7.2 Current Profile

The steps involved in calculating cash flows at a forward date under contractual terms when the method is selected as “Current Profile” are as follows:

  1. 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.
  2. The application calculates the current maturity profile of cash flows for each dimensional combination as follows:

    Figure 16-11 Formula to calculate the current maturity profile of cash flows for each dimensional combination.


    This illustration shows the formula to calculate the current maturity profile of cash flows for each dimensional combination.

    Where,

    x : Day in which the contractual cash flow occurs from 1 to n

    The application applies the current maturity profile percentage to each forward balance to obtain the forward cash flows as follows:

    This illustration shows the formula to calculate the forward cash flow. image384

    Where,

    f: Forward dates from 1 to n

    The current profile method is illustrated below. The inputs required for this method are provided below:

    As of Date (a) 28-Feb-16
    EOP Balance (b) 10000
    Forward Date 1 (c) 15-Apr-16
    Forward EOP Balance 1 (d) 8000
    Forward Date 2 (e) 17-Apr-2016
    Forward EOP Balance 2 (f) 8900

    The application computes the current profile and subsequently the forward cash flows as of each forward date as follows:

    Table 16-30 Example: Current Profile Computation

    Inputs Calculation
    Cash Flow Date (g) Cash Flows (h) Current Profile [i= (h b) * 100] Calendar Day [j= (g – a)] Forward Cash Flows as of 15-Apr-2016 Forward Cash Flows as of 17-Apr- 2016
    Forward Cash Flow Date(c + j) Forward Cash Flows(d * i) Forward Cash Flow Date(e + j) Forward Cash Flows(f * i)
    1-Mar-16 979.00 9.79% 2 17-Apr-16 783.20 19-Apr-16 871.31
    2-Mar-16 496.00 4.96% 3 18-Apr-16 396.80 20-Apr-16 441.44
    3-Mar-16 377.00 3.77% 4 19-Apr-16 301.60 21-Apr-16 335.53
    4-Mar-16 520.00 5.20% 5 20-Apr-16 416.00 22-Apr-16 462.80
    7-Mar-16 718.00 7.18% 8 23-Apr-16 574.40 25-Apr-16 639.02
    8-Mar-16 95.00 0.95% 9 24-Apr-16 76.00 26-Apr-16 84.55
    9-Mar-16 226.00 2.26% 10 25-Apr-16 180.80 27-Apr-16 201.14
    10-Mar-16 105.00 1.05% 11 26-Apr-16 84.00 28-Apr-16 93.45
    11-Mar-16 1035.00 10.35% 12 27-Apr-16 828.00 29-Apr-16 921.15
    14-Mar-16 726.00 7.26% 15 30-Apr-16 580.80 2-May-16 646.14
    15-Mar-16 444.00 4.44% 16 1-May-16 355.20 3-May-16 395.16
    16-Mar-16 333.00 3.33% 17 2-May-16 266.40 4-May-16 296.37
    17-Mar-16 335.00 3.35% 18 3-May-16 268.00 5-May-16 298.15
    18-Mar-16 508.00 5.08% 19 4-May-16 406.40 6-May-16 452.12
    21-Mar-16 270.00 2.70% 22 7-May-16 216.00 9-May-16 240.30
    22-Mar-16 414.00 4.14% 23 8-May-16 331.20 10-May-16 368.46
    23-Mar-16 209.00 2.09% 24 9-May-16 167.20 11-May-16 186.01
    24-Mar-16 310.00 3.10% 25 10-May-16 248.00 12-May-16 275.90
    25-Mar-16 371.00 3.71% 26 11-May-16 296.80 13-May-16 330.19
    28-Mar-16 564.00 5.64% 29 14-May-16 451.20 16-May-16 501.96
    29-Mar-16 965.00 9.65% 30 15-May-16 772.00 17-May-16 858.85

    Note:

    The current profile can be computed based on calendar days or business days.