Comments on: Modelling Principal Pre-payments-Part 1 http://www.fimodo.com/2010/01/modelling-principal-pre-payments-part-1/ Financial Modelling Experts sharing their knowledge Thu, 08 Jul 2010 20:23:15 -0700 http://wordpress.org/?v=2.8.2 hourly 1 By: Adrian http://www.fimodo.com/2010/01/modelling-principal-pre-payments-part-1/comment-page-1/#comment-389 Adrian Thu, 03 Jun 2010 09:10:56 +0000 http://www.fimodo.com/?p=734#comment-389 Hi, There is something which I am unclear of, and that is the split between paying the capital sum and interest. Assuming your last repayment schedule is 1000 (900 to capital, 100 to interest) and you make a Cash Sweep of 1000. Does it still pay 900 to capital and 100 to interest, or does it pay 900 to capital and the remaining 100 is paid to the capital in the 2nd last scheduled repayment? Regards, Adrian Hi,

There is something which I am unclear of, and that is the split between paying the capital sum and interest. Assuming your last repayment schedule is 1000 (900 to capital, 100 to interest) and you make a Cash Sweep of 1000. Does it still pay 900 to capital and 100 to interest, or does it pay 900 to capital and the remaining 100 is paid to the capital in the 2nd last scheduled repayment?

Regards,
Adrian

]]> By: Nick Crawley http://www.fimodo.com/2010/01/modelling-principal-pre-payments-part-1/comment-page-1/#comment-339 Nick Crawley Thu, 25 Feb 2010 21:13:34 +0000 http://www.fimodo.com/?p=734#comment-339 Hi Bhavik, File uploaded. Nick Hi Bhavik,
File uploaded.
Nick

]]> By: Bhavik Khatri http://www.fimodo.com/2010/01/modelling-principal-pre-payments-part-1/comment-page-1/#comment-306 Bhavik Khatri Wed, 27 Jan 2010 06:11:17 +0000 http://www.fimodo.com/?p=734#comment-306 Hi Nick, This is impressive stuff. Could you please attach a sample workbook? Kind Regards, Bhavik Hi Nick,

This is impressive stuff. Could you please attach a sample workbook?

Kind Regards,

Bhavik

]]> By: Rebecca L'Green http://www.fimodo.com/2010/01/modelling-principal-pre-payments-part-1/comment-page-1/#comment-299 Rebecca L'Green Thu, 14 Jan 2010 09:35:28 +0000 http://www.fimodo.com/?p=734#comment-299 I have wondered this meaning many time before. It is very useful to see that I was correct to leave from my models. Even now I see it I do not thinking it would be worth much. I also say this site is fantastic, I am a lawyer but use and build finance models for our projects too - I watch this site and my team are using for reference. Great! I have wondered this meaning many time before. It is very useful to see that I was correct to leave from my models. Even now I see it I do not thinking it would be worth much.

I also say this site is fantastic, I am a lawyer but use and build finance models for our projects too – I watch this site and my team are using for reference. Great!

]]> By: Nick Crawley http://www.fimodo.com/2010/01/modelling-principal-pre-payments-part-1/comment-page-1/#comment-294 Nick Crawley Tue, 12 Jan 2010 21:25:00 +0000 http://www.fimodo.com/?p=734#comment-294 Hi Blair, Well I am glad you think it is simple, it took years to work out and I personally wouldn't say that it is simple! I think it is as simple as such a complex concept can be. The important point I think is that each pre-payment can be tracked to see what it is being applied against. This matrix approach can be readily dropped for depreciation calculations but for this concept I would recommend it is preserved (at the risk of many lines of code, with just one unique formula of course). I will post a downloadable file of my workings on the Navigator website soon. On our Debt Modelling course we discuss concepts such as prepayments but draw the line before modelling them. That course covers such topics as sculpted repayments (without vba or circular references), mezzanine debt and how it fits in, it goes into the DSRA/c in detail and depending on the (small) class make up on the day we can discuss concepts such as this, > 1 IRR, the XIRR and higher end concepts. I will let you assess the course on our website rather than plug it here. www.navigatorPF.com Nick Hi Blair,

Well I am glad you think it is simple, it took years to work out and I personally wouldn’t say that it is simple! I think it is as simple as such a complex concept can be.

The important point I think is that each pre-payment can be tracked to see what it is being applied against. This matrix approach can be readily dropped for depreciation calculations but for this concept I would recommend it is preserved (at the risk of many lines of code, with just one unique formula of course). I will post a downloadable file of my workings on the Navigator website soon.

On our Debt Modelling course we discuss concepts such as prepayments but draw the line before modelling them. That course covers such topics as sculpted repayments (without vba or circular references), mezzanine debt and how it fits in, it goes into the DSRA/c in detail and depending on the (small) class make up on the day we can discuss concepts such as this, > 1 IRR, the XIRR and higher end concepts. I will let you assess the course on our website rather than plug it here. http://www.navigatorPF.com

Nick

]]> By: Blair Newton http://www.fimodo.com/2010/01/modelling-principal-pre-payments-part-1/comment-page-1/#comment-293 Blair Newton Tue, 12 Jan 2010 06:10:39 +0000 http://www.fimodo.com/?p=734#comment-293 This is a very impressive and yet simple solution to the inverse order of maturity! I haven't had the chance to code it up in Excel but will save it in my reference library for future use in my financial models. I have not yet been to any of your financial modelling training courses in London - do you cover topic like this in your debt modelling courses? This is a very impressive and yet simple solution to the inverse order of maturity! I haven’t had the chance to code it up in Excel but will save it in my reference library for future use in my financial models.

I have not yet been to any of your financial modelling training courses in London – do you cover topic like this in your debt modelling courses?

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