Skip to content

Commit

Permalink
Create README.md
Browse files Browse the repository at this point in the history
  • Loading branch information
yellowbean authored Oct 11, 2023
1 parent e6ea64a commit 3cb434e
Showing 1 changed file with 18 additions and 0 deletions.
18 changes: 18 additions & 0 deletions src/AssetClass/README.md
Original file line number Diff line number Diff line change
@@ -0,0 +1,18 @@
## How Cashflow Projection Work

### Steps

* determine the projection dates

* start date -> There is a field in asset present the `origination date` ,which means the date when asset came into existance.
* (original/scheduled) payment dates -> Then, cashflow engine will generate a vector of payment dates bases on `origination date` and `payment frequency`
* remaining payment dates -> base on the input field `remaining terms`, engine will trancate the `payment dates` to get `remaining payment dates`

* project cashflow with assumptions

* projected cashflow -> Given `remaining payment dates` and `current balance` , then engine will calculate cashflow with assumption starting from `remaining payment dates`

* truncate the cashflow via `cutoff date`

* `projected cashflow` was truncated via `cutoff date` ,that's the cashflow of asset which flows into the SPV

0 comments on commit 3cb434e

Please sign in to comment.