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This approach may not arrive at the correct result because the fundamental spread (FS) is not always the sum of PD and CoD. Where the floor relating to the long-term average spread (LTAS) applies, the fundamental spread is larger than that sum. In general, the matching adjustment should be calculated on the basis of the amount FS – PD. As the fundamental spread is calculated as FS = max(PD+CoD, 35%*LTAS), (see paragraph 243 of the Technical Documentation) that amount is equal to max(CoD, 35%*LTAS – PD).