Lesson 6 of 25 · 7 min
When the schedule is not in the statement
A missing column is still a number. It lives in the agreement, not in the month's snapshot.
Most statements print market value and stop. Units, price, and a total appear. Advance rates do not. Lending values do not. The blend, if it appears at all, appears as a single summary percentage with no row detail. The March Halden & Wren document used in this track is unusually complete; the more common document is a holdings list and a loan balance.
The schedule still exists. It exists in the agreement, in an annex, in a rate letter, or in a collateral exhibit sent at origination. Absence from the monthly snapshot is a reporting choice, not an absence of the rule. Track 1 lesson 19 put the same gap in information terms: the lender's system applies the table every night; the statement is designed to satisfy a period report.
Reconstruction then starts one document further back. You take the holdings list from the statement and the category table from the agreement, perform the matches from lesson 5, and produce the column the statement omitted. On the March numbers that omitted column is 50, 35, 70, 55 and 85 percent, and the products are the five lending values already computed. Without the agreement, those percentages have nowhere to come from.
Two failure modes follow. First, a borrower treats a missing column as a missing constraint and reads capacity off market value. Second, a borrower reuses an origination blend — 54.32 percent, say — after the mix has moved, which applies last month's weights to this month's prices. Both failures are the same document gap, read two ways.
The statement tells you what is held. The agreement tells you what each holding counts as. Neither document is optional for the product.
Key terms
- Holdings list
- The statement's inventory of positions and market values, often printed without advance rates.
- Collateral exhibit
- A document, usually at origination or on a revision, that states the category table being applied.
- Omitted column
- The advance-rate column that the monthly snapshot does not print. The rule remains in force.
Worked example
A statement that prints only market value
Same five March holdings and the same agreement table, but the statement shows market values only.
- What the statement gives
- $6,032,795
- What the agreement gives
- 50 / 35 / 70 / 55 / 85
- Products after the match
- $3,277,251.25
- Blend recovered
- 54.32%
- What reading capacity off market value would imply
- $6,032,795
Five market values, no rates.
By category.
A figure the facility does not use.
The omitted column is recoverable in one sitting, and it is the difference between $6,032,795 and $3,277,251.25.
Check yourself
A statement lists the five March market values and a drawn balance, and prints no advance rates. Where is the 35 percent on Calder, and what happens if you apply last month's 54.32 percent blend to this month's $6,032,795 instead?
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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.