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FlexFinance Core Valuation consists of various calculation kernels. Each kernel deals with the calculation of a specific figure/ratio.

On a high-granular level, a distinction can be made between two types of measurements:

  • Measure based on cash flows, such as
    • FV based on the Discount Cash Flow Method (please read more in the manual: Fair Value)
    • FV with constant credit spread based the Discount Cash Flow Method (please read more in the manual: Fair Value)  
    • Amortised cost (please read more in the manual: Amortised Cost), including remaining open amortisation and amortisation portion for a specific period
    • Effective Interest Rate (please read more in the manual: EIR)
    • Initial Residual Spread (InRS)
    • Risk Provisions based on Recovery Cash flows 
      • Recoverable Amount (please read more in the manual: Specific Provision)
      • Exposure at Default 
      • Unwinding (please read more in the manual: Unwinding)
    • Interest accrual
  • Statistical measures for which statistical methods are used for calculation, for example
    • Probability of Default based on historical performance data for customers 
    • Loss given default based on historical performance data for customers
    • Option price models


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