ApplyPriorityWaterfall2
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Function Description
Returns an array, 
, that corresponds to
the fraction of particular priority bands (‘tranches’) (
)
owned by different investors (
) that will be
satisfied if the debt (liability) values, 
, to ‘waterfall’
through the priority ladder are in ValuesToWaterfall, the overall asset
value available, 
, is AssetValue
(and if there is a surplus of AssetValue over the sum of the entries in ValuesToWaterfall
then this is allocated pro-rata in line with:
(a) 
, the SurplusDistributionFractions,
to the different priorities in the order implied by ValuesToWaterfall,
if AllocateSurplusByPriorityLevel is true
(b) 
, the SurplusDistributionFractions,
to the different investor categories in the order implied by ValuesToWaterfall,
if AllocateSurplusByPriorityLevel is false
Earlier entries are given higher priority in this cascading,
i.e. all debts/liability values applicable to the earlier entries are honoured
in full (to the extent that this is possible) before any later (i.e. lower
priority) debts/liability values are honoured at all.
The function does not trap for negative values of 
or .
Application of this type of computation can be important for
financial structures where liabilities are tranched or otherwise honoured
differently in the event of insufficient assets being present to honour all the
liabilities in full.
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Output type / Parameter details
Output type: Double()
| Parameter Name | Variable Type | Description |
| ValuesToWaterfall | Double() | Values of debts/liabilities of different priorities for different investor categories |
| NumberOfInvestorCategories | Integer | Number of investor categories |
| NumberOfPriorityLevels | Integer | Number of priority levels |
| AssetValue | Double | Total assets available |
| SurplusDistributionFractions | Double() | Fractions that define how any surplus is distributed |
| AllocateSurplusByPriorityLevel | Boolean | If true then surplus allocated by 2nd index, i.e. priority level, if false by 1st index, i.e. investor category |
Links to:
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Interactively run function
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Interactive instructions
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Example calculation
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Output type / Parameter details
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Illustrative spreadsheet
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Other Cash-Flow Projection functions
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Computation units used
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