27 Rate Dependency Patterns
This chapter describes the procedure for working with and managing Rate Dependency Patterns.
Rate Dependency Patterns allow you to set up relationships between the level of Interest Rates, Economic Indicators, or Rate Spreads and ALM forecast assumption rules. After defining Rate Dependency Patterns, you can attach these patterns to ALM forecast business rules. ALM assumption rules with Rate Dependency Patterns, work together with your Forecast Rate scenarios to determine assumptions applicable to each specific scenario within your simulation. The following rule types support Rate Dependent assumptions:
- Forecast Balances
- Forecast Maturity Mix
- Forecast Pricing Margins
- Transaction Strategies
- Formula Results
When Rate Dependency Patterns are attached to an ALM business rule, you will be able to input multiple versions of each assumption type within a single assumption rule. The ALM engine dynamically retrieves the assumptions which apply to the scenario being processed.
The procedure for working with and managing Rate Dependency Patterns is similar to that of other Asset Liability Management business rules. It includes the following steps:
- Searching for Rate Dependency Patterns. For more information, see the Searching for Rules section.
- Creating Rate Dependency Patterns. For more information, see the Creating Rules section.
- Viewing and Editing Rate Dependency Patterns. For more information, see the Viewing and Editing Rules section.
- Copying Rate Dependency Patterns. For more information, see the Copying Rules section.
- Deleting Rate Dependency Patterns. For more information, see the Deleting Rules section.