31.19 Spread from Note Rate

To generate transfer prices using this method, you need to provide just one parameter: a Rate Spread. This spread is added or subtracted from the Coupon Rate of the underlying transaction to generate the final transfer rate for that record.

Figure 31-21 Spread from Note Rate

While entering the Rate Spread, ensure to input it with the appropriately positive or negative sign, as illustrated in the following table. The first row describes a situation where you are transfer pricing an asset and want to have a positive matched spread for it (the difference between the contractual rate of the transaction and the transfer rate is positive). Here, you should enter a negative rate spread.

Table 31-9 Example of Rate Spread

Account Type	Matched Spread	Sign of Rate Spread
Asset	Negative	Positive (Profitable)
Asset	Positive	Negative (Unprofitable)
Liability or Equity	Positive	Positive (Profitable)
Liability of Equity	Negative	Negative (Unprofitable)

The following option becomes available in the application when you select this method:

• Mid-Period Repricing Option: Select the check-box beside this option to invoke the Mid-Period Repricing option.

Note:

The Spread From Note Rate Method applies only to accounts that use Account Tables as their data source.