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

8.20.1.1 Adjustment - Fixed-rate

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 fixed amount is matched to the specified reprice frequency of the instrument. If the instrument is fixed-rate and, therefore, does not have a reprice frequency,the fixed amount lookup happens based on the original term of the instrument.
  • Original Term: The calculation assigns the fixed amount based on the original term onthe instrument.
  • Remaining Term: The calculation assigns the fixed amount based on the remaining term ofthe instrument.

    The remaining term value represents 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 assigns the fixedamount based on the Duration of the instrument, specified in the TP_DURATION column.
  • Average Life (read from the TP_AVERAGE_LIFE column): The calculation assigns the fixed amount based on 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 Rates should be input as annual rates.