1. Asset Liability Management User Guide
  2. Oracle Asset Liability Management Process
  3. Capturing Instrument Behavior for Non-standard Instruments
  4. Defining Payment Patterns
  5. Payment Pattern Structure

8.9.2.1 Payment Pattern Structure

Oracle Asset Liability Management allows you to build three types of payment patterns:

  • Absolute
  • Relative
  • Split

These payment patterns differ in terms of how they address payment schedules, which determine whether the payment events constituting the pattern are determined by calendar dates or periods. Absolute patterns are defined with sets of payment characteristics scheduled on specific calendar dates. Relative patterns are defined with sets of payment characteristics scheduled for certain periods of time.

You can also define a payment pattern with both absolute and relative payment events. This type of pattern is called a split pattern.

Also, for each payment pattern, you must specify a payment type, either conventional, level principal, or non-amortizing. Your choice of the pattern type and the payment types will determine the fields that are used for calculation.