What is 'exogenous spread' in SAP FS-BA-SD - Source Data?

exogenous spread - Overview

• Component: FS-BA-SD

• Component Name: Source Data

• Description: A maturity-dependent interest rate that is used together with a basic curve to discount expected future cash flows in order to determine the full fair value.

exogenous spread - Details

• 
  Key Concepts: 
  Exogenous spread is a term used in the SAP Financial Services - Bank Accounting - Sales and Distribution (FS-BA-SD) source data. It is a type of spread that is determined by external factors, such as market conditions, rather than internal factors, such as the bank's own policies. 
  
  How to use it: 
  Exogenous spread can be used to calculate the cost of a loan or other financial product. It is calculated by taking into account external factors such as market conditions, interest rates, and other external factors. The resulting spread can then be used to determine the cost of the loan or other financial product. 
  
  Tips & Tricks: 
  When calculating exogenous spread, it is important to consider all external factors that may affect the cost of the loan or other financial product. This includes market conditions, interest rates, and other external factors. Additionally, it is important to consider any potential risks associated with the loan or other financial product before making a decision. 
  
  Related Information: 
  Exogenous spread is related to endogenous spread, which is determined by internal factors such as the bank's own policies. Additionally, exogenous spread is related to risk-based pricing, which takes into account potential risks associated with a loan or other financial product when determining its cost.