Liquidity Analysis

Client Analysis Software (CAS)

Liquidity Analysis

In analysing your liquidity position we assess your cash and redraw capacity (available loan funds) to identify how liquid your situation is in order to handle market volatility and cash flow risks. Your Investment Risk Profile is used to set an upper and lower liquidity limit based on a % of your total loan limits in place.

Your upper liquidity limit is the amount of cash and redraw capacity that must be available as an emergency buffer. The lower liquidity limit is the upper limit less the discounted value of other unencumbered liquid assets (e.g. blue chip shares and managed funds) which may be liquidated if required.

The more aggressive a client’s Investment Risk Profile, the greater the amount of risk that they are willing to take and this is reflected in a lower % of total loan limits required to be held in cash or redraw capacity as an emergency buffer.

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