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Setting Up Liquidity Adjustments

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This article is meant as a setup guide for PrecisionLender Administrators. For general information about Liquidity Adjustments, please see our Understanding Liquidity Adjustments article.

 

Adding a Liquidity Adjustment in PrecisionLender

On the Regions and Users pane of the Administration Section. Click on the name of the Funding Package to which you wish to apply a Liquidity Adjustment.

 

FundingPackages.png

 

Click "Edit" in the top left corner of the funding package page.

Check the box next to Liquidity Adjustments. If you want to specify different adjustments for different maturities, click "Add Adjustment", and you can specify different periods of time.

 

Add_Adjustment.png

 

To delete any of these adjustments, click the trashcan icon next to the Maturity field.

The "For all" rate adjustment applies to all durations greater than the largest Maturity in the table.

When you are done, click "Save" at the top to save these Liquidity Adjustments to this Funding Package.

 

Liquidity_Adjustments.png

Notes:

  • The duration on a liquidity adjustment specifies that the adjustment be applied to all duration points with shorter maturities, that do not already have an adjustment. 
  • Although negative liquidity adjustments can be entered at this level, they are not currently supported via the API.

 

Example: Liquidity Adjustments and their applied duration range (table below)

Duration

Adjustment

Months This Duration Applies To

24

0.1%

19-24

30

0.15%

25-30

36

0.2%

31-36

For All

0.55%

Over 120

 

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