1. Asset Liability Management User Guide
  2. Andrew Davidson and Company (ADCo) Prepayment Method
  3. Procedure For Setting Up ADCo Process
  4. Mapping of the ADCo function
  5. Forecast Rates

37.2.1.4 Forecast Rates

Interest Rate Forecast Methods

In the case of an ADCo IRC forecast, while defining using Direct Input, the Show 360 Months Buckets check box is displayed only if the ALM_ADCO function is mapped.

  • By default, the check box is not selected (or check box is not displayed), and the window continues to display its existing behavior.
  • If you select the check box, then this window shows360 Month option and the date display follows the MMM-YYYY format.

Forecasting the 7 indices is similar to forecasting the 2 year and 10 year rate IRCs having term points as 2 years and 10 years.

For more information, see the Forecast Balance Rules section.

Economic Indicator (EI) Forecast Methods

The Economic Indicator window has a similar behavior for Economic Indicator Forecasting method of DirectInput. But, UI checks for the National HPI Selection in Application Preferences. The Audit option for ADCo is displayed in the ALM Process window only if the ALM_ADCO function is mapped. Forecasting the NHPI is an optional step.

For more information, see the Forecast Balance Rules.