Formulating Algorithms for Debt Repayment and Liquidity Management

In this meeting, the State Changers discussed an issue concerning the sequential calculation of "liquidity" in relation to "tranche" analysis in a financial model. The original issue rested on the fact that the sequential calculation needed to reflect the mandatory debt repayment from the tranches.

The State Changers suggested that liquidity should be both an input and an output to the function examining the tranches. Further, they proposed that liquidity state should be passed from one tranche to another, thereby enabling an updated liquidity object post tranche analysis. This would allow for the order of operations in scenarios with multiple tranches. There was a debate on whether liquidity should be treated as an object or an array. Ultimately, it was determined that it could remain an object given its function as both an input and output. However, considering intra-period drawdowns and paydowns, it was suggested that an array might offer event-tracking capability which would capture such activities. The conversation also mentioned the use of anonymous functions in the filters with "Xano", suggesting that attendees of the State Changers meeting have a working knowledge of this tech tool. Anyhow, a clear resolution wasn't reached around the liquidity object/array query and further exploration would be necessary.

(Source: Office Hours 8/21/23 )

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