1. Asset Liability Management User Guide
  2. Oracle Asset Liability Management Process
  3. Transfer Pricing Methodologies and Rules
  4. Spread from Interest Rate Code

8.18.2 Spread from Interest Rate Code

Under this method, the transfer rate is determined as a fixed spread from any point on an Interest Rate Code. The following options become available on the application with this method:

  • Interest Rate Code: Select the Interest Rate Code for Transfer Pricing theaccount.
  • Yield Curve Term: The Yield Curve Term defines the point on the Interest Rate Code thatwill be used to transfer price. If the Interest Rate Code is a single rate, the Yield Curve Term is irrelevant. Select Days, Months, or Years from the drop-down list, and enter the number.
  • Lag Term: While using a yield curve from an earlier date than the Assignment Date, youmust assign the Lag Term to specify a length of time prior to the Assignment Date.
  • Rate Spread: The transfer rate is a fixed spread from the rate on the Transfer Rate YieldCurve. The Rate Spread field allows you to specify this spread.
  • Assignment Date: The Assignment Date allows you to choose the date for which theyield curve values are to be picked up. Choices available are the As of Date, Last Repricing Date, Origination Date, or TP Effective Date.