16.1.7.7 Drawdown Assumption

This method involves leveraging the existing drawdown business assumption to specify an additional drawdown of the undrawn commitments and lines. The drawdown rates and corresponding repayment rates for each time bucket are specified through the business assumption definition window by selecting the assumption category as Incremental cash flow and subcategory as Drawdown.

The user is allowed to select one or multiple drawdown assumptions as part of the forward date contractual Run definition UI. For forward cash flow calculations, the only allowable ‘Based On’ measure is Undrawn Amount that is only those assumptions which are based on the undrawn amount are displayed for selection as part of the contractual Run in the Run Management window. This restriction does not apply to business-as- usual. The application applies the user-specified drawdown and off-set rates to each forward undrawn balance to compute additional cash flows as of each forward date. Refer to the Drawdown section of the OFS Liquidity Risk Measurement and Management User Guide for more details on defining the drawdown assumption.