Within the Expenses tab, the user can define expenses that will go into structuring a deal; for example, accounting costs, legal fees, etc. The Expenses tab is divided into two different sections: Upfront Expenses and Ongoing Expenses.
Upfront Expenses:
The user can document any Upfront Expenses. The names of the expenses appear by default, but they can be edited by the user.
Ongoing Expenses:
The user can define Ongoing Expenses in the deal in a very flexible manner.
The expenses can be modeled in different units: Amount ($), Bps (Collat), Bps (Collat) + Amount ($), Bps (Collat) Yearly Mode. All fields can be a simple number or a vector.
Once choosing a unit, the appropriate columns will be enabled.
For the Bps based expenses, the expense will depend on the collateral (denoted as Collat). These are only applicable when the deal is based on loans.
See Bps Calculation below.
The user can also define an expense that will be based both on a dollar amount and on the Bps (Collat). In addition, the user can define a Bps (Collat) Yearly Mode.
See Bps Yearly Mode Calculation below.
When using Bps, the user can toggle on the bottom of the table whether the balance on which the Bps calculation is based is an Opening balance or Ending balance.
Another option is to define a Dynamic Expression on which to base the Expense. This option gives the user great flexibility to define specific Expenses based dynamically on the unique deal terms.
See Dynamic Expressions for more information about defining dynamic expenses.
The user can also define when each Expense timing occurs. Chose from all periods, only when the bonds are outstanding, or only when the bonds are paid in full. Deal termination can be done in Pro-Rate or Full Amount.