Thanks ! Very clear. But I notice that the gearing level has increased over the periods. How to manage to calculate the IDC with the Gearing constraint be respected ?
This is really good stuff-no blur blur blur here. Thanks, Bank Run. You indicate a preference for the IDC without circular references, but from the lenders' perspective, which approach is mostly preferred? Additionally, I can't wait to hear your explanation on modeling commitment fees during construction. 😁😁😁
Hi Gabriel, Lender's will accept the IDC calculation without the circular reference. Keep in mind that for this to be true, you need to have your construction timeline to be on a quarterly basis. For the commitment fees, this can be the topic of the next video!
Hi Bank Run, great video. I just wanted to check something when you calculate interest per period. If the interest is being compounded on a monthly basis, would dividing the interest rate by 4 understate the interest accrued for that quarter? Thanks!
Hi. This is a good question and I plan to do a video on this topic. If you are interested in digging on it by yourself, just google "nominal vs real interest rates".
Thanks ! Very clear. But I notice that the gearing level has increased over the periods. How to manage to calculate the IDC with the Gearing constraint be respected ?
Thanks, Bank Run. I have been struggling with the macros, and you just simplified it. Thank you once again
Happy to help!
Thank you for this. Very clear examples.
Glad it was helpful!
This is really good stuff-no blur blur blur here. Thanks, Bank Run. You indicate a preference for the IDC without circular references, but from the lenders' perspective, which approach is mostly preferred? Additionally, I can't wait to hear your explanation on modeling commitment fees during construction. 😁😁😁
Hi Gabriel,
Lender's will accept the IDC calculation without the circular reference. Keep in mind that for this to be true, you need to have your construction timeline to be on a quarterly basis.
For the commitment fees, this can be the topic of the next video!
Very well explained
Glad it was helpful!
Hi Bank Run, great video. I just wanted to check something when you calculate interest per period. If the interest is being compounded on a monthly basis, would dividing the interest rate by 4 understate the interest accrued for that quarter? Thanks!
Hi. This is a good question and I plan to do a video on this topic. If you are interested in digging on it by yourself, just google "nominal vs real interest rates".