10 Maintain Portfolio Preference Class

Preferences are the options that are available to you for defining the attributes of a portfolio. Based on the type of portfolio, (bank, customer, and issuer) you are defining the following are some of the preferences that you can define:

• The costing method to be used
• The accounting basis
• Accrual frequencies for components like premium, discount, forward profit or loss
• Revaluation preferences
• Limit tracking preferences

A set of such preferences can be grouped together into what we call in Oracle Banking Treasury Management, a ‘Preference Class’. You can maintain several portfolio preference classes. The preferences that you define will shape a portfolio and give it a distinctness that is unique to the type it represents.

The Advantage of Defining a Portfolio Preference Class

While creating a portfolio product, instead of specifying preferences for each product, you need to just associate the appropriate portfolio preference class to the product. All the attributes defined for the class will be made applicable to the portfolio product. You can change the defaulted preferences to suit the product. The preferences that you specify for a portfolio are comprehensive and cover all types of securities that can constitute it. Depending on the type of security the preferences will apply.

Note:

Once defined, a portfolio preference class can be made applicable to any number of products.

This chapter contains the following sub-topic:

• Specify Portfolio Preference Class
  This topic describes the systematic procedure to specify portfolio preference class.
• Yield Accrual for Deals bought on Par
  This topic describes the yield accrual for deal bought on par.