We are pleased to announce that PrecisionLender has developed and will update at least monthly a recommended liquidity curve for our clients' use.
What is a Liquidity Curve?
A liquidity curve permits variance in the cost of funds for floating and adjustable rate loans that have longer durations. PrecisionLender believes it is important to use liquidity adjustments in pricing such loans due to the additional costs and risks involved in loans with longer maturities. We have always allowed clients to upload and use their own liquidity curves; however, we didn't have a great alternative for clients who would have liked to use liquidity adjustments, but weren't sure how to develop them. We are excited to introduce a Recommended Liquidity Curve for those clients.
What Do I Need to Do?
If you don't wish to make any changes on how you handle liquidity curves, no action is required on your part. If, however, you'd like to use the PrecisionLender Recommended Liquidity Curve, please reach out to your CSM, Consultant or Support and we will be happy to help you get this set up. For more information on liquidity adjustments, visit Setting Up A Liquidity Adjustment.