User Guide
Web Trade Finance Calculator
Click on a subject to see the topic on the page below.
Introduction
Features
Software
Range Limits
Selecting a Base Rate
Data Entry Formats
Printing
Messages
Examples
The calculator consists of several individual web pages, each supporting
one aspect of a trade finance transaction or analysis. Each
can be reached from the Selection Page. Some of the calculator
pages also provide links to more user information related to only that page.
The remainder of this Guide provides general information about the
ensemble.
Calculator capabilities vary by page but, in general, the calculator embodies features that distinguish it from typical web facilities, spreadsheets, and other forfaiting aids:
• Several discount interest methods are available including straight, simple, and compound discount-to-yield.
• Discount and Issuer Interest are separately calculated.
• Separate base and spread (margin) rates are used, often different for each note of a set.
• Fees can be included both as a flat percentage and given amount.
• Inputs are edited to help prevent typographical errors and weird results.
• Each input field is explained by help text.
Nevertheless, each of the web pages is somewhat restricted. For a full set of capabilities, see the other NoteWell products.
The calculator can be used on a user's workstation with Microsoft Internet Explorer, Mozilla, or Netscape Navigator although the capabilities differ depending on the browser used.
Input
values are checked against limits to help eliminate typographical errors and
prevent odd calculation results.
Permitted values are:
0 <= Invoice Amount <= 10 billion
0 <= Principal <= 10 billion
0 <= Proceeds <= 10 billion
0 <= Purchase Price <= 10 billion
0% < Discount Margin + Discount Baserate < 61%
0% < Issuer Margin + Issuer Baserate < 61%
01 Jan 2000 <= Dates < 01 Jan 2030
-100 < Grace Days < +100
- 25% < Fee1 < +25%
- 25% of Face < Fee2 < +25% of Face
If a "NaN" code appears in a calculated field, indicating that a result is Not a Number, check and fix invalid inputs and recalculate.
Tests are performed to detect blanks and non-numeric entries. Final edits are performed by the client browser when the Calculate button is pressed. They are not necessarily performed upon leaving an input field because some checks depend on other fields which may not have been entered yet. If a violation is found, a message is displayed for the last problem found. If no problems are found, the page is submitted to the server where the calculations are performed.
LIBORs are commonly used as a base rate when pricing negotiable instruments. Selecting the appropriate rate for a particular note often requires interpolation between two rates found in a Bloomberg or Reuters rates table. To interpolate:
(1) Find the tenor of the note, in days, d.
(2) Find the highest row in the rates table where the period is less than the note's tenor. The period is D1 days and the corresponding rate is R1 percent.
(3) The next higher row shows the number of days D2 and the rate R2.
(4) Find the interpolated base rate using the formula:
Ri = ( (D2 × R1) - (D1 × R2) + (R2 - R1) × d) / (D2 - D1)
Sample input dates are set to values such as 31/12/2002 or 31/12/2001 to remind users to use the dd/mm/yyyy format. This format avoids ambiguity and avoids feeding the calculator functions with invalid values. However, two-digit years are used when there is no ambiguity.
All but the Floater Pricing page rely on the date handling of Microsoft software, which will give eratic results if dates such as 32/07/04 or 15/15/04 are entered. Ensure that valid dates are entered. Where dates are generated by the calculator for output, the ddMONyyyy format (31 Dec 2005) is used to avoid ambiguity to remote readers.
Numbers may be entered with embedded commas. Amounts may include two decimal places and interest rates six places. If more decimals are entered, the number is truncated to the two or six during processing.
Grace days will be taken as an integer even if a fraction is entered. 5.5 days would be accepted as 6 days, for example.
Depending on the user's browser, operating system, and printer, best results may be obtained by using the landscape orientation and minimizing margins. To capture a page as it appears on a graphics display, press PrintScreen, paste into a word processor, and print.
Cautions. Browsers print whatever is on the screen even when an error has occurred and the data displayed is left over from an earlier calculation. Ensure that a Calculate is executed immediately before printing to ensure that incoherent data and results are not recorded.
Upon
pressing
Calculate, a "Processing..." message
appears to the right of the help text box, and persists until the calculation
results are received back from the web server.
While the Selection page is waiting for delivery of a calculation page from the server, the "Requesting..." message appears.
If a problem is detected by the web server or the client browser, a red
"E R R O R" message appears to the right of the help text area. In either case, no calculation occurs and the results from the previous state remain on the screen. This can happen, for example, when a combination of input values cannot be handled even though each individual value is within range.
At least one example is provided in support of each calculator page. Each example illustrates a unique feature of a calculation page as well as provides a starting point for a live example. The live example guides the user to enter valid variables and confirms that the results are correct.