Track 17 of 25

Reading a statement

What each section of a facility statement is, where the terms live, how to find the index and the spread, what an interest leg is, and how to locate the maintenance threshold — taught on a supplied fictional Halden & Wren page.

25 lessons

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What this document is, and what it is notA statement is a snapshot of one period, not a contract and not a live view of risk.7 min
The header: who, which facility, which periodFour printed names decide which agreement, which month, and which arithmetic actually apply.6 min
Why the statement date and the period end are different daysThe period closes on the last calendar day; the page is dated when the ledger is struck.7 min
Where the terms live — they are not all on the statementThe page reports outcomes; the credit agreement still holds the rules that produced them.7 min
Finding the indexThe reference rate is a published market number, and the statement only names which one.6 min
Finding the spreadThe lender's margin sits beside the index, and it is the half of the rate that is not public.6 min
Finding the day-count conventionThe divisor that turns an annual rate into a daily charge is a term, not a rounding choice.6 min
What an interest leg isA leg is one stretch of days at one rate on one balance, and March has two of them.6 min
Locating the opening and closing balanceClosing is opening plus the period's arithmetic, and the two numbers are a chain, not two facts.6 min
The rate schedule versus a single printed rateThe header rate is the last one in force; the charge is the integral of every day that ran.7 min
The positions table: what each column isEach row is six columns about one holding, and only two of those columns are market observations.6 min
Market value against lending value on the same rowThe first column is a price times units; the second is that product after the lender's discount.6 min
Why the blended advance rate is printed and the schedule is notA single percentage hides which rows carry the capacity, and Calder is the row that does not.6 min
Finding the maintenance thresholdThe call line is a percentage of a named basis, and this page happens to print both halves.6 min
What LTV on the statement is measured againstThe same loan over the same collateral produces two ratios, and only one of them is the test.6 min
The available-to-draw lineUndrawn capacity is the limit minus the opening balance, not the gap to the maintenance trigger.6 min
Accrued versus capitalised interestAccrual is the daily earning; capitalisation is the moment that earning becomes new principal.6 min
Prior-period adjustments, and how to see if one is presentA correction from February would break the opening identity, and March's opening matches February's close exactly.6 min
What is missing from the page: trigger and headroomThe two numbers that say how far collateral can fall are computable and are not printed.6 min
Discretion language, and what it does not quantifyA reserved right names a power without a size, a date, or a probability attached to it.8 min
How two consecutive statements chainFebruary's closing balance is March's opening balance, and that identity is the only proof they belong together.6 min
A gap in statements: what you loseA missing month erases the rate path, the reset date, and the only check that the chain still holds.7 min
Reading the same number in two placesA figure that appears twice and still reconciles is a check; a figure that appears once is a claim.7 min
A walk through every section of the March statementEleven printed facts, read in order, reconstruct the month; the two facts that matter most still sit off the page.7 min
What the statement taught you and what it hidThe page is complete as a period summary and incomplete as a risk document, and those are different jobs.8 min

Educational only. Nothing in this track is investment, legal or tax advice, or a recommendation to enter into any transaction. Completion is stored in this browser and nowhere else.