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Is circular reference useful?
- Thread starter Mangolili
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BarCodeWiz
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- Jun 2, 2011
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I'd argue that it's almost always better to rewrite the function with a loop (if possible) than to use recursion. You'll keep your sanity.
(If you've seen the movie Inception, you'll know what I mean lol)
(If you've seen the movie Inception, you'll know what I mean lol)
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Circular reference, in my point of view, is a sword with 2 edges.
Assuming you plan to raise a debt for a deal which doesn't generate sufficient cash flow to service the debt payment in the beginning and you have to set up a reserve acct to satisfy the coverage ratio required by the lender, you need circular reference to help you figure out the appropriate amount of the beginning balance of the reserve account, which will be financed by the same debt as well. As you can see, here is a loop.
The issue is that you couldn't send this calculation to any rating agency unless you santize the model by removing the circular reference. If you think this sounds a bit painful, we share the same feeling.
Assuming you plan to raise a debt for a deal which doesn't generate sufficient cash flow to service the debt payment in the beginning and you have to set up a reserve acct to satisfy the coverage ratio required by the lender, you need circular reference to help you figure out the appropriate amount of the beginning balance of the reserve account, which will be financed by the same debt as well. As you can see, here is a loop.
The issue is that you couldn't send this calculation to any rating agency unless you santize the model by removing the circular reference. If you think this sounds a bit painful, we share the same feeling.
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BrandonWLH
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- Jun 14, 2011
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Just wanted to add, circular references are critical when you are doing field effects for engineering using the cells as 'points' in space and seeing how say a magnetic or electric field can propagate across a plate.
Since every point in space effects every point around it, and all the points around a point effect the central point, you got to keep iterating unitl u hit a stable point where the change is minizmzed per iteration, usually under 1%.
Since every point in space effects every point around it, and all the points around a point effect the central point, you got to keep iterating unitl u hit a stable point where the change is minizmzed per iteration, usually under 1%.
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