Overview
Loan benchmarks enable the setting up of floating rates within the system. This page explains how add a new loan benchmark in the Finvisage application. As part of adding a new loan benchmark, you need to enter the new loan benchmark name and its maturity period in the New page. You can access this New page by clicking the Menu icon on the Loan Benchmark page. Once the details are entered and saved, the new loan benchmark is added.
You can create multiple loan benchmarks in the Finvisage application. Apart from this, you can add values to the loan benchmark curve by date. The system updates the floating rate schedules based on the date of the curve.
Apart from creating new loan benchmarks, you can also update the existing ones. As part of updating, you can make changes such as changing loan benchmark name and adding more maturity periods.
Additionally, you can add interest rates to the loan benchmarks.
In a nutshell, you can perform the following in Loan Benchmark setting:
- Adding a New Loan Benchmark
- Updating a Loan Benchmark
- Viewing Interest Rates
- Adding Interest Rates
Adding a New Loan Benchmark
In this section, we will describe how to add a new benchmark. As an example, we will show how to add the Libor benchmark here.
To add a new benchmark
1. On the Side Panel of the Finvisage application, click Settings.
The Settings menu is expanded.
2. On the expanded Settings menu, click Loan Benchmarks.
The Loan Benchmark page is displayed.
3. On the Loan Benchmark page, click the Menu icon at the right bottom of the page to view the Add button, and then click it.
The New page is displayed.
4. On the New page:
A. In the Name field, enter a name for the benchmark. For example, Libor.
B. Click the Add New Maturity button.
The Maturity field is displayed below.
C. In the Maturity field, enter the maturity period. For example 3M (Here M indicates Months).
D. Click the Create button.
The new loan benchmark is created. See the image below:
Updating a Loan Benchmark
In this section, we will describe how to update a benchmark. As an example, we will show how to add more maturity periods to Libor.
To update a loan benchmark
1. On the Side Panel of the Finvisage application, click Settings.
The Settings menu is expanded.
2. On the expanded Settings menu, click Loan Benchmarks.
The Loan Benchmark page is displayed.
3. On the Loan Benchmark page, click the Edit button corresponding to the loan benchmark, which you wish to update. Here, it is Libor.
The Edit page is displayed.
4. On the Edit page:
A. Click the Add New Maturity button.
The Maturity field is displayed.
B. In the Maturity field, enter the maturity period. For example, 6M (Here M indicates Months) .
Note: You can create multiple maturity fields. There is no limit. Besides, if you wish, you can change the benchmark name as well.
C. Click the Update button at the bottom.
The Loan bench mark was successfully updated message is displayed.
See the image below. The loan bench mark is updated with 6M maturity period.
Viewing Interest Rates
In this section, we will describe how to view the interest rates of a loan benchmark.
To view interest rates
1. On the Side Panel of the Finvisage application, click Settings.
The Settings menu is expanded.
2. On the expanded Settings menu, click Loan Benchmarks.
The Loan Benchmark page is displayed.
3. On the Loan Benchmark page, click the View icon corresponding to the loan benchmark, whose interest rates you wish to view. For example, Libor.
The Loan Interest page is displayed with the interest rates.
Adding Interest Rates
In this section, we will describe how to add interest rates to a loan benchmark.
To add interest rates
1. On the Side Panel of the Finvisage application, click Settings.
The Settings menu is expanded.
2. On the expanded Settings menu, click Loan Benchmarks.
The Loan Benchmark page is displayed.
3. On the Loan Benchmark page, click the View icon corresponding to the loan benchmark to which you wish to add interest rates. For example, Libor.
The Loan Interest page is displayed with the interest rates.
4. On the Loan Interest page, click the Menu icon at the bottom to view Add, and then click it.
The New page is displayed .
5. On the New page:
A. From the Currency drop-down box, select the currency.
B. From the Market Date, select the market date.
C. In the Interest column, double-click the cell, and then enter the interest rate. See the image below.
D. Click the Create button.
The Successfully added interest rates message is displayed and the interest rate is added to the Loan Interest page of the Loan Benchmark.