29 Forecast - Pricing Margins

The Pricing Margin Rules allow users to define pricing margins (or spreads) for your products. Pricing margins are defined period by period based on your active Time Bucket definition, for each product and, potentially, each currency. Pricing margins work together with an underlying base interest rate curve to determine note rate pricing for new business volumes defined through Forecast Balance Rules. 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

When you require more complex definitions of pricing margins to model unique account pricing details, user-defined repricing patterns can be used.

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

• Searching for Pricing Margin rules. For more information, see Searching for Rules section.
• Creating Pricing Margin Rules. For more information, see the Creating Rules section.
• Viewing and Editing Pricing Margin rules. For more information, see View and Edit the Rule section.
• Copying Pricing Margin rules. For more information, see Copy the Rule section.
• Deleting Pricing Margin rules. For more information, see Delete the Rule section.