Clarifications About Multiple Drawdown Cost In FTP
(Doc ID 2734178.1)
Last updated on DECEMBER 22, 2020
Applies to:Oracle Financial Services Funds Transfer Pricing - Version 126.96.36.199.0 and later
Information in this document applies to any platform.
Oracle Financial Services Funds Transfer Pricing (FTP)
Oracle Financial Services Analytical Applications (OFSAA)
Oracle Financial Services Enterprise Performance Management (EPM)
Question 1: Drawdown of loans doesn’t happen at once but happens in staggered basis till maturity. How can this be handled in OFSAA FTP? How can client attach the FTP Cost in OFSAA for such drawdowns?
Question 2: Please answer additional queries below:
1). For individual strip, is the maturity same as loan maturity? Say 10K drawdown on 100K loan with 10Y maturity. Will individual strip of 10K also have 10Y maturity?
2). Each strip will have different future dates of drawdown. So does client need to apply the forward rates from 2nd strip onwards? If Yes, how to do that?
3). As the drawdown is yet to happen, Loan value date > As of date, Loan instrument table doesn't allow forward contracts. How should client handle this?
Question 3: Following aspects are understood:
1). This need to be in Account Rate Tier table.
2). Each strip need to be individually Transfer Priced.
3). Then finally bring it to Master account by doing weighted average rate for all tiers.
Is above understanding correct? Or are there any additions?
Also, as a drawdown is on future dates, would the TP rates attached to strips be Spot rates or Forward rates? Please confirm.
Question 4: Can you clarify on how Original Book Bal, Org Par Bal, Cur Book Bal & Cur Par Bal will get computed?
Loan Limit - 100000
Loan disbursed - 10000 - 1st Strip
Loan disbursed - 10000 - 2nd Strip
For 1st Strip:-
Original Book Bal - 10000, Org Par Bal - 10000, Cur Book Bal - 10000 & Cur Par Bal - 10000
For 2nd Strip:-
Original Book Bal - 10000, Org Par Bal - 10000, Cur Book Bal - 20000 & Cur Par Bal - 20000
and so on.
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