The State Changers discussed some of the challenges faced while working through a simulation component of a project. Specifically, the conversation revolved around handling different scenarios involving fixed versus floating rate situations. They also dealt with aspects like amortization dates, coupon payment dates, and payment rate scenarios, with further investigation into these from both single tranche and multiple tranche points of view.
One participant expressed difficulties when dealing with floating rate scenarios, particularly when factoring in different durations and tenors across multiple tranches. They discussed how certain tranches required payments in different intervals, such as at the end of the first quarter or in the middle. A major part of their struggle was how to manage this in tandem with facing accruing interest payable. Ultimately, they leaned towards a solution involving feeding an object and date range into a function to ascertain the accrued interest over a given period. It was decided to not focus on creating an UUID but to keep the approach based on dates. Handling payments through computing, rather than object creation, was also discussed to streamline the process. The importance of cleanly managing data needs was reiterated, with preferences for maintaining simplicity regarding data during the process's intermediary stages.
(Source: Office Hours 10/5/2023 AM )
