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. Relative Payment Patterns

8.9.2.4 Relative Payment Patterns

Relative payment patterns are used for modeling instruments with irregular payment frequencies or for instruments where the payment type changes over time. Take the case of a four-year loan for example. The payment for the first 12 months could only be interest. The first 35 payments are scheduled for 50% of the currently scheduled payment, and the last payment is a balloon payment for the balance of the loan.