Lesson 2 of 25 · 6 min

Reconstructing blended from the five Halden & Wren rows

Five products and one division rebuild the collateral figure. Nothing else is required.

Sample statement · fictional

Halden & Wren Private Credit

Securities-backed demand facility

This document is fictional. The institution, the account, the positions and every figure were invented so the arithmetic can be checked by hand.

Client: Northreed Holdings LLC
Account: HW-7721-4408-19
Facility: HW-SB-44107
Period: 1 March 2026 – 31 March 2026
Statement date: 2 April 2026
Day count: Act/360

Rate schedule

Index: one-month term funding rate
Spread: 1.85%
Index, 1–11 March: 5.12%
Reset: 12 March 2026
Index, 12–31 March: 5.37%
Stated rate, first 11 days: 6.97%
Stated rate, last 20 days: 7.22%

Balance

Opening drawn balance: $1,847,220.00
Draws / repayments: $0.00
Interest, 1–11 March: $3,934.07
Interest, 12–31 March: $7,409.40
Interest charged: $11,343.47
Closing drawn balance: $1,858,563.47
Facility limit: $2,400,000.00
Undrawn at open: $552,780.00

Positions at 31 March close

Name	Units	Price	Market	Advance	Lending
Meridian Industrial common	12,400	$148.25	$1,838,300.00	50%	$919,150.00
Calder Growth common	3,100	$593.55	$1,840,005.00	35%	$644,001.75
Broad-market equity collective	4,150	$214.80	$891,420.00	70%	$623,994.00
Oakridge Utility preferred	8,200	$62.40	$511,680.00	55%	$281,424.00
Short-duration government fund	18,600	$51.15	$951,390.00	85%	$808,681.50

Total market value: $6,032,795.00
Total lending value: $3,277,251.25
Blended advance rate: 54.32%
LTV on market value, at close: 30.81%
Maintenance threshold: 70% of market value

The March statement sits above this lesson. Each pledged row already carries a market value. The advance rate is the missing multiplier. Lending value is the product. The blend is the sum of the products divided by the sum of the market values.

Work the five lines. Meridian Industrial common: $1,838,300 × 0.50 = $919,150. Calder Growth common: $1,840,005 × 0.35 = $644,001.75. The broad-market equity collective: $891,420 × 0.70 = $623,994. Oakridge Utility preferred: $511,680 × 0.55 = $281,424. The short-duration government fund: $951,390 × 0.85 = $808,681.50.

Add the products: 919,150 + 644,001.75 + 623,994 + 281,424 + 808,681.50 = 3,277,251.25. Add the market values: 1,838,300 + 1,840,005 + 891,420 + 511,680 + 951,390 = 6,032,795. The quotient is 3,277,251.25 ÷ 6,032,795 = 0.543239, which is 54.32 percent to two decimals.

That is the whole reconstruction. If a later statement prints a blended figure without the row products, the same five multiplications recover it. If they do not recover it, either a row is missing, an advance rate has moved, or the printed blend is using a different perimeter — pledged versus unpledged, trade-date versus settlement. The arithmetic does not negotiate. A blend that cannot be rebuilt from the rows is not a second truth about the book; it is a discrepancy with a cause.

The blend is not a sixth input. It is a checksum on the five you already have.

Key terms

Row product: Market value multiplied by that row's advance rate. The lending value of one holding.
Reconstruction: Rebuilding a printed total from the lines that compose it, so a discrepancy has somewhere to live.
Perimeter: Which holdings enter the sum. A blend computed on pledged rows will not match a blend computed on the whole account.

Worked example

The March book, line by line

Halden & Wren statement dated 2 April 2026, covering 1 March to 31 March. Advance rates as printed on the five pledged rows.

Meridian lending value: $919,150
Calder lending value: $644,001.75
Collective lending value: $623,994
Oakridge lending value: $281,424
Government-fund lending value: $808,681.50
Blended advance rate: 54.32%

Every dollar of the $3,277,251.25 is a product you can point at. The 54.32 percent is only those dollars, divided.

Check yourself

Using only the five March market values and their advance rates, what two totals must you form before the blended rate exists, and what is that rate?

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Educational only. Nothing in this lesson is investment, legal or tax advice, or a recommendation to enter into any transaction. Figures are illustrative and computed from the inputs stated in the lesson.