32.2.1 Availability of Adjustment Methods
The list of Adjustment Methods depends on the adjustment type that you select: Add-on Rates (including Liquidity Adjustments, Basis Risk Costs, Pricing Incentives, and Other Adjustments), or Breakage Charges. The following table describes the Adjustment Methods available for each of the Adjustment Types.
Figure 32-3 Adjustment Rule Definition - Adjustment Rule Details
Table 32-2 Availability of Adjustment Methods
Adjustment Method | Adjustment Type: Add-On Rates (Liquidity Adjustments, Basis Risk Costs, Pricing Incentives, and Other Adjustments) | Adjustment Type: Breakage Charges |
---|---|---|
Do Not Calculate | Yes | Yes |
Fixed-Rate | Yes | |
Fixed Amount | Yes | Yes |
Formula Based Rate | Yes | |
Use TP Method from Selected TP Rule | Yes | |
Economic Loss | Yes | |
Fixed Percentage | Yes |
Note:
If you select Do not calculate as the calculation method, no adjustment assumptions will be assigned to the particular product-currency combination. This is a particularly useful option when using node-level assumptions because it allows you to exclude a particular Child from inheriting a Parent's assumption.