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RE: Loan FpML WG Meeting: 3 November 2009, 1000-1100EST (London Time: 3-4pm)



Hi Bhavik,
At Credit Suisse, we would consider the rateset notice a pre-release event.  Our set up includes an intent notice, sometimes the rateset, and then the release (which is when cash transacts).  Publication occurs at the time of intent and rateset.  If there are corrections at intent, prior to release, the intent notice can be regenerated limitlessly.  Same for rateset.  Once the release takes place, off-setting transactions must be entered.
 
Under this scenario, Rollover would not be any different than other messages.  We would publish the Rollover at intent and again at rateset.  When ratesets are involved in a Rollover, we are currently publishing.
 
If you would like to depict that the Rollover message is produced for a specific purpose, such as the rateset event, it is recommended that you add a rateset flag to the message.  The Rollover "type" already has a specified enum that does't seem to work for it.
 
Please let me know if you would like to discuss further.  Thanks, Ann

From: loanwg@xxxxxxxx [mailto:loanwg@xxxxxxxx] On Behalf Of Bhavik Katira
Sent: Tuesday, November 03, 2009 9:49 AM
To: loanwg@xxxxxxxx
Subject: RE: Loan FpML WG Meeting: 3 November 2009, 1000-1100EST (London Time: 3-4pm)

Additional Item to add to the list below

 

12. New Request: Rate Set Notices. In a rollover situation where we have multiple existing loan contracts transforming to a new set of loan contracts, each of the contracts may require a rate set notice to be created. At the moment the rate set notice is not part of the rollover message. Is the expectation that the sender would need to generate separate rate set notices for each loan contract ‘rolling over’ or should we incorporate this workflow within the rollover structure itself…?

 

Regards,

 

Bhavik Katira

CEO

 

TenDelta™

Fresh insight. Pure logic.

 

www.tendelta.com

 

+1.917.582.4574 new york

+44.(0).7780.808732 london

 

TenDelta™ provides business process consulting, technology design & education services; specializing in the Syndicated Loan Market. Entrusted with engineering innovative & logical solutions; we endeavor to deliver timely, robust, cutting-edge solutions.

 

Copyright ©2008-2009. TenDelta™ LLC (US), TenDelta™ Limited (UK). All Rights Reserved.

 

From: loanwg@xxxxxxxx [mailto:loanwg@xxxxxxxx] On Behalf Of Bhavik Katira
Sent: Tuesday, November 03, 2009 3:25 AM
To: loanwg@xxxxxxxx
Subject: Loan FpML WG Meeting: 3 November 2009, 1000-1100EST (London Time: 3-4pm)

 

Dial-in Details

 

US: + 1 (888) 481 - 3032

Intl: + 1 (617) 801- 9600

UK: 0800 904-7961

 

Participant Code: 28413758

 

Please refer to the attached schema design.

 

Items to discuss:

 

1.       Design Proposal: Introduction of a Commitment Adjustment Structure.

a.       Review structure

b.      What business scenarios should it be used…? Is it simply when there is a commitment change where no cash flow occurs…?

c.       Agree that it should be used whether there is a decrease or an increase.

d.      Change can be positive or negative…? Or should we have a flag followed by an absolute amount…?

2.       Design Proposal: Should we introduce an ‘Effective Date’ in the facility notice section…?

3.       Design Proposal: Rollover changes

a.       Added ‘effectiveDate’.

b.      Renamed ‘Maturing-‘ to ‘Prior-‘ and ‘New-‘ to ‘Current-‘.

c.       Introduced the ‘currentLoanContract’ structure

d.      CurrentLoanContract contains a optional choice which contains either a DrawdownPayment, loanContractIncrease or conversionFlag.

4.       Design Proposal: L/C Termination should contain the change amount rather than the prior amount. More generically, should we be capturing change amounts in all notices, rather than prior amounts…? (It was mentioned in the last call that prior amounts are notoriously difficult to extract in many cases).

5.       Design Proposal: Interest payment adjustment added to InterestPayment structure. Should we capture this extra field to take into account an adjustment from a previous period…? The other option is to capture this in the new Cash Flow section and make it generic to all business events.

6.       Design Proposal: Updated the LenderLoanContractPeriod in the InterestAccrualSchedule to InterestLoanContractPeriod. This is to account for the fact that the interest accrual may not be based on the actual lender position. It may be based on a portion of the lender position. E.g. A repayment occurs mid-accrual period and the interest relating to the repayment amount is paid. When the interest payment is communicated, the underlying InterestLoanContractPeriod, not the full lenders loan contract position.

a.       Are we interest in knowing whether the InterestLoanContractPeriod is actually the lender’s position…?

b.      Should we represent both InterestLoanContractPeriod and LenderLoanContractPeriod…?

7.       Confirm: Modification Flag in Facility Notice. There is no way to tell multiple instances of a modification… is this an issue…?

8.       Confirm: L/C contains amount and participation amount.

9.       Confirm: Choice containing full deal structure in the Facility Notice.

10.   Confirm: Contacts structure.

11.   New Request: In the following scenarios should we expect to send multiple messages out or come up with a combination message type:

a.       Repayment with Interest

b.      Repayment and New Loan

c.       Multiple On-Going Fees, Interest Payments, Rate Fixes, Margin Changes etc…

 

Regards,

 

Bhavik Katira

CEO

 

TenDelta™

Fresh insight. Pure logic.

 

www.tendelta.com

 

+1.917.582.4574 new york

+44.(0).7780.808732 london

 

TenDelta™ provides business process consulting, technology design & education services; specializing in the Syndicated Loan Market. Entrusted with engineering innovative & logical solutions; we endeavor to deliver timely, robust, cutting-edge solutions.

 

Copyright ©2008-2009. TenDelta™ LLC (US), TenDelta™ Limited (UK). All Rights Reserved.

 

From: loanwg@xxxxxxxx [mailto:loanwg@xxxxxxxx] On Behalf Of Bhavik Katira
Sent: Monday, October 19, 2009 6:19 PM
To: loanwg@xxxxxxxx
Subject: No Loan FpML WG Meeting: 20 October 2009

 

All,

 

Unfortunately I have a clash with this call for tomorrow and will be travelling.

 

In the last few weeks we have had feedback from working group members regarding:

 

-          Increased flexibility with the Rollover Notice structure – especially with respect to increases & repayments.

-          Suggested updates to the Business Validations from the business working group.

-          Suggested updates to the L/C structure.

-          Suggested updates to the Interest Payment structure to cater for the case where we have a partial interest payments, mid-period.

-          The introduction of Contact information.

-          Simplification of new vs modified messages using a flag to denote the difference.

-          The introduction of a simple Commitment Adjustment structure.

 

The feedback has been great and we are expecting more, based on our last FpML call.

A new copy of the schema will be available as soon as the latest changes are in. We are waiting for some feedback on a few design points – we expect it to be completed at some point this week.

 

Please keep sending in your comments as they relate to applying the standards to real-life messages.

 

Regards,

 

Bhavik Katira

CEO

 

TenDelta™

Fresh insight. Pure logic.

 

www.tendelta.com

 

+1.917.582.4574 new york

+44.(0).7780.808732 london

 

TenDelta™ provides business process consulting, technology design & education services; specializing in the Syndicated Loan Market. Entrusted with engineering innovative & logical solutions; we endeavor to deliver timely, robust, cutting-edge solutions.

 

Copyright ©2008-2009. TenDelta™ LLC (US), TenDelta™ Limited (UK). All Rights Reserved.

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