From a lenders piont of viwq, is the principle proportion of a amortising loan repaid considerred as investment cashflow ?
Look at a smaller bank’s 10Q. I know interest is considered CFOperations, but the 10Q will show the principal easily. They make no money on the principal repayment, so it may be investment cf.
I would assume so, yes. As a lender on an amortizing loan, you have prepayment risk as a result of the borrower pre-paying quicker than expected…If they prepay quicker than expected, they are paying down their principal which will affect interest payments and eat into the yield you were expecting from the overall loan.