Net income
The model calculates the net income of the new business taking account of asset income, funding costs (including required RoC), default expectations, the cost of holding liquidity, tax and overheads. It is expressed in terms of Net Present Value, on an accrual basis and as a percentage margin.
Required capital
The model evaluates how much capital is required throughout the life of the asset to support both the customer asset and the liquidity portfolio.
NSFR and Leverage Ratio
Shown graphically throughout the life of the asset
Basis risk
The model shows any basis risk arising from the proposed funding structure. (Note that the model prices on the basis of hedging any interest rate risk.)
