Track 21 of 25

Knowing your number

What to compute monthly, what to watch between statements, and what a gap in statements means — still on the same fictional facility.

25 lessons

Mark a lesson complete and it is remembered here.

The number you can compute before anyone writes to youThe trigger is a division you already have the inputs for, and the letter only confirms it.7 min
What is computable on the first day of a monthLast month's close and last month's schedule are enough for a rate and a headroom before a new price prints.6 min
What moves between statementsThe figure that moves between statements is the balance by a known daily increment, and the book by every print.7 min
A price you can see and a lending value you cannotThe screen prints a last sale; the lending value is a haircut the next letter has not yet applied.6 min
Building a running LTV from public prices and last month's scheduleFive row products and a carried-forward schedule produce a ratio the next letter has not printed.6 min
The error in that running LTVUsing last month's close as today's numerator understates the ratio by every day of unpaid interest.7 min
What a gap of one missing statement costsOne skipped letter leaves the next month's interest accruing on an opening that is already eleven thousand dollars light.7 min
What a gap of three months costsThree silent months freeze a balance that interest has already lifted by thirty-two thousand dollars.7 min
A rate move you can see the day it is publishedTwenty-five basis points on the index is twelve dollars and eighty-three cents a day on this opening balance.6 min
A collateral move you can see the day the market prints itCalder's last sale is a multiplication you can finish before the next letter is drafted.6 min
An advance-rate move you cannot see until the next letterA haircut revision leaves the market-value trigger untouched and rewrites only the lending-value column.6 min
Combining the three into a weekly reconstructionA published rate, five public prints, and last month's schedule rebuild seven days the letter has not covered.6 min
Headroom as a daily numberWith prices held flat, thirty days of interest alone shave twenty-seven hundredths off the March headroom.7 min
The trigger as a price on CalderThe other four names already sit above the trigger, so Calder cannot produce the call by itself.7 min
The trigger as a price on MeridianThe same subtraction on a different row produces another impossible price, for the same structural reason.6 min
The trigger as a blended declineThe uniform drop that meets the trigger is the headroom percentage, written the other way round.6 min
A second threshold inside the lender's threshold, as arithmeticDividing the same balance by one-half instead of seven-tenths is a second trigger, not a recommendation.7 min
When two consecutive statements disagreeMarch's close is April's opening; any other printed pair is a difference you can name in dollars.6 min
What "no news" between statements is notSilence is not a flat line: interest posts every day and Calder prints whether a letter arrives or not.7 min
Reconstructing a silent month from prices alonePublic prints rebuild the book; they do not reveal a draw, a unit change, or a revised haircut.6 min
The checklist, item by item, against the March statementEvery printed total on the sample is a sum or a quotient you can form from the rows above it.6 min
The same checklist against an invented AprilA new month is the same five checks with different inputs, not a different kind of arithmetic.6 min
What you now know how to do by handAn interest leg, a blended advance, a trigger, a shortfall and a sale-to-cure are five operations, not five mysteries.7 min
What the hand method cannot seeThe reconstruction stops at the lender's mark, the intra-day test, and any haircut that has not been written down.7 min
The reconstruction, and whose monthly job it isThe printed totals were always quotients; forming them again each month is the platform's job.5 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.