1. Asset Liability Management User Guide
  2. Prepayment Models
  3. Create Prepayment Models
  4. Procedure to Define the Structure of the Prepayment Model

21.1.1 Procedure to Define the Structure of the Prepayment Model

The Prepayment Model consists of the Prepayment Dimensions and the Bucket Values for these Dimensions which you select on this page. To define the prepayment model structure, you can select a maximum of three prepayment dimensions. Once the dimensions and the number of buckets (tiers) are defined, you need to assign values to the buckets.