1. Asset Liability Management User Guide
  2. Forecast – Maturity Mix

30 Forecast – Maturity Mix

Maturity Mix Rules allow you to define the term distribution of new business added during each forecast period. Maturity Mix assumptions are set at the product and currency levels. For new volumes generated during a simulation run, you will define the maturity and amortization terms applied to the balances originated in each period, as well as specify a maturity distribution for the volumes originated. For example, mortgage originations may be divided into 25% - 5 Year Term or 30 Year Amortization, 25% - 7 Year Term or 30 Year Amortization, and 50% - 30 Year Term or 30 Year Amortization. You attach the set of maturity assumptions to apply to all new volumes within a Dynamic ALM Process by selecting the appropriate Maturity Mix Rule.

New business assumptions are defined based on the combined inputs from the following four forecast related Business Rules:

  • Product Characteristics
  • Forecast Balance Rules
  • Forecast - Pricing Margins
  • Forecast – Maturity Mix

The procedure for working with and managing Maturity Mix Rules is similar to that of other Oracle Asset Liability Management business Rules. It includes the following steps:

  • Searching for Maturity Mix rules. For more information, see Searching for Rules section.
  • Creating Maturity Mix Rules. For more information, see the Creating Rules section.
  • Viewing and Editing Maturity Mix rules. For more information, see View and Edit the Rule section.
  • Copying Maturity Mix rules. For more information, see Copy the Rule section.
  • DeletingMaturity Mix rules. For more information, see Delete the Rule section.

As part of creating and editing Maturity Mix Rules, you must define Maturity Mix assumptions for applicable products.