How sensitivity and stress-test analysis works for Direct-Hold Solutions
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style(corporate): split 2 remaining over-length sentences — sensitivity exhibit-placement test, ifrs-forecast distribution-reconciliation passage (EN+ES; no factual changes)
@@ -43,7 +43,7 @@ Separately, the IFRS 13 §93(h)(ii) sensitivity table applies a ±25 basis-point ## How to tell which scenario you're reading Any given exhibit in this methodology can be placed correctly by checking two things. First, which of the three coverage drivers is being flexed, and whether the exhibit is a single-driver stress or the maximal combined shock — this comes down to whether two of the three drivers are held at base (a single-driver stress) or whether financing rate, cap rate, and occupancy are all moved together (the combined shock). Any given exhibit in this methodology can be placed correctly by checking two things. First, which of the three coverage drivers is being flexed, and whether the exhibit is a single-driver stress or the maximal combined shock. This comes down to whether two of the three drivers are held at base (a single-driver stress) or whether financing rate, cap rate, and occupancy are all moved together (the combined shock). Second, which side of the disclosure boundary the exhibit sits on. The management-response and corrective-disposition exhibits described above are forward-looking illustrative scenarios, while the IFRS 13 table is a fair-value-measurement sensitivity disclosure. The two are prepared to different standards — the forward-looking exhibits carry caution language consistent with NI 51-102 and ISAE 3400, and the IFRS 13 table follows that standard's own ±25 bps reasonably-possible-alternative-assumption convention. A figure that cannot be placed on one side or the other of that boundary has not been correctly located within the methodology.