Monitoring Liquidity Chapter - TSECF and TSECCF example

[IDosh1374]

Hey Below are the table I created to undersatnd TSECF and TSECCF clearly could you please chack and let me know if my understanding is correct.
Table 1:

Month	Asset	Interest on Asset1 (Loan)	Interest on Asset2 (Bond purchase)	Sale of Asset (Loan Repayment)	Asset Cash Flow
1	-20.00	Brought in month 1 and sold in month 10			-20.00
2	0.00	1.00			1.00
3	0.00	1.00			1.00
4	0.00	1.00			1.00
5	-50.00	1.00			-49.00
6	0.00	1.00	2.50		3.50
7	0.00	1.00	2.50		3.50
8	0.00	1.00	2.50		3.50
9	0.00	1.00	2.50		3.50
10	-30.00		2.50	20.00	-7.50

Table 2:

Month	Liability	give int on Liability 1	Repay Liability 1	Repay Liability 2	Liability Cash Flow
1	50.00				50.00
2	100.00				100.00
3	0.00	-5.00			-5.00
4	0.00	-5.00			-5.00
5	0.00	-5.00	-100.00		-105.00
6	0.00				0.00
7	70.00				70.00
8	0.00				0.00
9	0.00			-70.00	-70.00
10	20.00				20.00

Table 3:

Month	TSECF (Net Cash Flow)	TSECCF (Cumulative Cash Flow)
1	30.00	30.00
2	101.00	131.00
3	-4.00	127.00
4	-4.00	123.00
5	-154.00	-31.00
6	3.50	-27.50
7	73.50	46.00
8	3.50	49.50
9	-66.50	-17.00
10	12.50	-4.50

 

[Clay Carter]

Hey Below are the table I created to undersatnd TSECF and TSECCF clearly could you please chack and let me know if my understanding is correct.
Table 1:

Month	Asset	Interest on Asset1 (Loan)	Interest on Asset2 (Bond purchase)	Sale of Asset (Loan Repayment)	Asset Cash Flow
1	-20.00	Brought in month 1 and sold in month 10			-20.00
2	0.00	1.00			1.00
3	0.00	1.00			1.00
4	0.00	1.00			1.00
5	-50.00	1.00			-49.00
6	0.00	1.00	2.50		3.50
7	0.00	1.00	2.50		3.50
8	0.00	1.00	2.50		3.50
9	0.00	1.00	2.50		3.50
10	-30.00		2.50	20.00	-7.50

Table 2:

Month	Liability	give int on Liability 1	Repay Liability 1	Repay Liability 2	Liability Cash Flow
1	50.00				50.00
2	100.00				100.00
3	0.00	-5.00			-5.00
4	0.00	-5.00			-5.00
5	0.00	-5.00	-100.00		-105.00
6	0.00				0.00
7	70.00				70.00
8	0.00				0.00
9	0.00			-70.00	-70.00
10	20.00				20.00

Table 3:

Month	TSECF (Net Cash Flow)	TSECCF (Cumulative Cash Flow)
1	30.00	30.00
2	101.00	131.00
3	-4.00	127.00
4	-4.00	123.00
5	-154.00	-31.00
6	3.50	-27.50
7	73.50	46.00
8	3.50	49.50
9	-66.50	-17.00
10	12.50	-4.50

@IDosh1374 What reading is this in reference to?

 

[IDosh1374]

Liquidity snd leverage reading 67

@IDosh1374 What reading is this in reference to?

 

[Clay Carter]

Liquidity snd leverage reading 67

@IDosh1374
It is hard for me to verify everything without an XLS. However, from what I can tell:

• You correctly computed each asset‐side cash flow (loan issuance, coupon payments, bond sale, etc.).
• You correctly computed each liability‐side cash flow (borrowing, interest expense, principal repayment).
• You then took the difference (Asset CF minus Liability CF) to form TSECF, and summed those month by month to get TSECCF which is also correct.

From the best I can tell your understanding looks correct! CC