Hello Experts!
We are including a Money Market contract that is corrected by a variable rate and after then your balance updated by a fixed interest rate. To solve this agreement we are using two Products. The first is an Interest rate instrument with capitalized interests. The second transaction is a bilateral facility Product where are using the fixed interest rate to actualize the base amount from first transaction.
The problem is occurring only on the bilateral facility Product. As the main contract has its capitalized interest the correct should be the Bilateral Facility to collect the base amount already updated with the interests. What is happening is that the Bilateral Facility is ignoring the interests on the day of extraction, using only the base amount. If we calculated for the next month, the base amount will consider the interests of the previus month. Thus the value of the base amount is always with a delay of one month.
Could you please let me know why the Bilateral Facility does not consider the interest on the day of extraction?
Best Regards