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Creating and Editing Custom Funding Curves

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In the Rates & Indices section of the Administration page of PrecisionLender, you have the ability to create a custom funding curve.  

  • To create a custom funding curve in PrecisionLender, see the tutorial below.
  • For information about uploading a custom funding curve using our API, please visit our Developer Portal linked in the following article.

 

From the Administration Screen, click "Rates and Indices" on the left hand side.

Select Rates & Indices from the menu bar on the left side.

 

Under "Client Funding Curve Sources", click "New" to create a new curve. If you wish to edit an existing curve, simply click on its name and then click "Edit" in the upper left hand corner.

 

Click the New button next to Client Funding Curve Sources.

 

If the "Enabled" box is checked, the curve will be available to be selected in the setup of a product.

 

If the Enabled box next to the curve's name is checked, the funding curve will be available to use for products.

 

When creating a new funding curve, you can specify whether the funding curve types will be All In Rates or Raw Rates. Raw funding curves are assumed to have no intrinsic liquidity adjustment, so all liquidity adjustments and funding curve adjustments are added to the curve to get the final rate. All-in curves are assumed to have the liquidity premium embedded into the curve, which results in a different cost of funds for floating and adjustable rate loans since the liquidity premium will be calculated at the funding curve point, rather than at the time of repayment. 

 

You can also set the Interest Rate Conversion Factor for rates under 13 months to use Actual/360. These values are only able to be set upon creation of a new funding curve; they cannot be edited after the curve is saved.

 

all_in_rates.PNG

 

Click the "Add" button to add more points to the curve. For each point on the curve, you can specify the duration and rate. The trash can beside a point can be used if you wish to delete a point from the curve.

add_button_reatke.png

 

As you make adjustments to the points you can view a graph of the curve below.

Funding_Curve_Graph_Retake.PNG

When you are finished, remember to click "Save" to keep the changes you have made. 

You can save your new funding curve at the top left side by clicking the Save button.

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