8.9.3.3 Relative Repricing Pattern

The relative repricing pattern is a series of repricing events that are driven by user-defined timelines. It is used for instruments where the repricing is determined by the elapsed time since origination. You specify the duration of each repricing period (frequency) and the number of times the event should occur (repeat) before calculating the next event in the pattern.

For example, an event can be defined with a frequency of 1, a multiplier of Months, and a repeat value of 3. This translates into an event that reprices every month of 3 consecutive months.

You may have a graduated rate mortgage that requires three rate changes over the life of the instrument. You will have three events following the initial event. If you wish the instrument to retain the behavior defined for the last event, the repeat value should be set to 999. This prevents wrapping, or the recycling of all the defined events until the life of the instrument runs out.