Under the Index Rates scenario, users can define index rates within their deals. When a deal is shared with a scenario, the Index rates information will be shared with it. The Index Rate parameter can be used when a user inputs adjustable rates in their deal structure. Instructions to include adjustable rates are outlined below.

 

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Inputs

The index is the chosen adjustable rate and is separate for each scenario:

    1. Under Value, a vector can be defined.
    2. The unit is always %.

 

How to add Index Rates

Users can choose the Floating Rate option at the portfolio and capital structure level and then select an Index Rate. The user will then assign value to this Index Rate in the Scenarios tab to stress the deal. 

 

To add an Index Rate at the Portfolio level

  1. The user must locate the adjustable rate tab within the portfolio section of the platform
  2. The user must choose “no” for fixed rate drop-down
  3. Then choose an Index Rate from the drop-down to reference.
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To add an Index Rate at the Capital Structure level: 

  1. The user must locate the Capital Structure tab
  2. The user must toggle the “Rate Type” column to Floating or Custom 
  3. Then choose an Index in the “Index” column
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After choosing an Index Rate for reference in the Portfolio or Capital Structure tab, the user must assign values in the Scenarios tab.

 

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How to add an Index Rate to a Dynamic Expression: 

When the user opens the dynamic expression editor there is a “Library” drop-down. The user must select the $built-in option. Then in the category drop-down, select “index_rates.” 

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Once that category is chosen, all the market rates to reference will be available in the list. 

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