Counterparty B
belongs to the retail segment. His loan
is covered by a collateral. The collateral
is a bond, which is modelled as a PAM (Principal
at Maturity) in RiskPro. The coupon of the
collateral is slightly above par, the NPV
will be higher than the nominal value.
The value of the
exposure can be observed in the market risk
NPV report. The exposure is reduced by the
value of the collateral:
522.71 Loan
102.55 Collateral
420.16 Net Exposure
The gross exposure
as well as the exposure after the contract
level collateral can be tracked in the report.
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