Lesson 10 of 25 · 6 min
A collateral move you can see the day the market prints it
Calder's last sale is a multiplication you can finish before the next letter is drafted.
Calder prints $581.90 against a March close of $593.55. Three thousand one hundred shares move by 3,100 × ($581.90 − $593.55) = 3,100 × −$11.65 = −$36,115. The book that was $6,032,795 is $5,996,680. The balance has not heard about the print, so the trigger is still $2,655,090.67 if the day is still 31 March, or the accrued trigger if the day is later. Headroom in dollars is $5,996,680 − $2,655,090.67 = $3,341,589.33, which is 55.72 percent of the new book.
That is the whole of a one-name collateral move on a market-value test: a new last sale, a multiplication by units, a new book, a subtraction of an unchanged trigger. Lending value on Calder would move by −$36,115 × 0.35 = −$12,640.25 if last month's haircut is still being applied. The maintenance test on this sample does not use that column.
The letter that eventually reprints Calder at a month-end last sale is a later snapshot of the same multiplication. The figure that moves between statements, on a print day, is the change in units × last sale. Waiting for the snapshot leaves the book looking like $6,032,795 on a day when one row has already taken $36,115 off it.
A pledged last sale is a public input to a private test. The multiplication does not wait for the test to be typeset.
Key terms
- Print-day book
- Yesterday's book plus units times the change in last sale, formed the day the tape prints the new price.
- Unchanged trigger
- The trigger belonging to an unchanged balance. A price move does not touch it; only interest, draws and repayments do.
Worked example
Calder at $581.90, other four rows held at March
3,100 shares, March last sale $593.55, new last sale $581.90, trigger still $2,655,090.67, other rows unchanged.
- Calder change
- −$36,115
- New book
- $5,996,680
- Trigger
- $2,655,090.67
- Headroom in dollars
- $3,341,589.33
- Headroom as a percentage
- 55.72%
3,100 × ($581.90 − $593.55).
$6,032,795 − $36,115.
Balance unchanged.
Was 55.99%.
One last sale took 0.27 percentage points off headroom. The multiplication is finished on the print day.
Check yourself
Calder prints $581.90. Units are 3,100, the other four rows are unchanged, and the trigger is still $2,655,090.67. What is the new headroom percentage?
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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.