1. Asset Liability Management User Guide
  2. Oracle Asset Liability Management Process
  3. Defining Adjustment Rules
  4. Adjustment Methods and Rules
  5. Adjustment - Fixed Amount

8.20.1.4 Adjustment - Fixed Amount

The Fixed Amount Adjustment method allows the user to associate an amount with specific terms or term ranges. Reference term selections include:

  • Repricing Frequency: The calculation retrieves the rate for the term point equaling thereprice frequency of the instrument. If the instrument is fixed-rate and, therefore, does not have a reprice frequency, the calculation retrieves the rate associated with the term point equaling the original term on the instrument.
  • Original Term: The calculation retrieves the rate for the term point equaling the originalterm on the instrument.
  • Remaining Term: The calculation retrieves the rate for the term point corresponding tothe remaining term of the instrument. The remaining term value is the remaining term of the contract and is expressed in days. Remaining Term = Maturity Date – As of Date
  • Duration (read from the TP_DURATION column): The calculation retrieves the rate forthe term point corresponding to the Duration of the instrument, specified in the TP_DURATION column.
  • Average Life (read from the TP_AVERAGE_LIFE column): The calculation retrieves the rate for the term point corresponding to the Average Life of the instrument, specified in the TP_AVG_LIFEcolumn.

You can create your reference term ranges and assign a adjustment amount to all instruments with a reference term falling within the specified range.

All adjustment amounts should be input in base currency for the selected product/ or currency combination.